Carrefour shares skid on report of possible fine

By Steve Goldstein

Shares of French supermarket giant Carrefour slumped on Tuesday after a report the French government wanted to levy a 200 million euro fine.

Carrefour shares (FR:CA) fell as much as 9% after the publication La Lettre said the finance ministry was recommending a fine over management of its franchise network.

The stock was trading at its lowest level in four years.

The ministry confirmed it's seeking a penalty but hasn't confirmed the size, reports from Paris say.

The issue are contracts which prevent franchisees from joining another brand and clauses that require purchasing from Carrefour.

Last year, Carrefour recorded 420 million euros of revenue from franchise and lease management fees.

Carrefour said it considers the proposed penalty disproportionate and that it contests the case.

-Steve Goldstein

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06-18-24 0739ET

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