For the First Time: Carrefour Strikes Back Against Activist Fund Whitelight Capital

Indeed, while the investment vehicle led by Kevin Romanteau had sent Carrefour over 200 questions a month ago, Sebastien Valentin, the group’s director of financial communications, explained his decision not to respond. “In the absence of proof of Whitelight Capital’s shareholder status, […] we are unable to understand the framework of your approach, as well as the purpose of the questions submitted.” The fund, on its part, in a response sent to the CAC 40 company, indicated it held Carrefour shares, but below 5%, which does not oblige it to publicly disclose its position.

“Furthermore, the number, content, and orientation of the questions posed raise questions about the real intentions of Whitelight Capital”, the letter accuses. In essence, the retailer seems to imply a desire by the activist to harm Carrefour, or at least to drive down its stock price. In his response, Kevin Romanteau explains his efforts to properly inform shareholders, and defends himself against any short-selling strategy, wishing to remain a long-term shareholder in Carrefour.

Finally, Carrefour issues a firm legal reminder. “We remind you that the dissemination of information about a publicly traded company is subject to specific regulations that particularly prohibit the dissemination of false or misleading information that could influence the price of its stock, and Carrefour will ensure its compliance.” This is a veiled way of indicating that Whitelight Capital’s media charges against the group led by Alexandre Bompard could be legally challenged. Once again, Romanteau defends himself against any misinformation, in the response letter written by his lawyer.

On both sides, eyes are beginning to turn to the Financial Markets Authority. At Carrefour, the publicity of even the smallest letter is causing teeth to grit. Whitelight’s letter asserts: “If defamatory allegations or unjustified obstacles to shareholder rights persist, Whitelight Capital expressly reserves all rights, including the right to approach the AMF and pursue all appropriate legal remedies”.

One thing is certain: a month away from the publication of its half-yearly results and with the company at a historically low level on the stock market, Carrefour seems no longer willing to let attacks against it pass without action. The cold war between the retailer and Whitelight Capital is escalating to a new phase.