Carrefour SA, the world's second-largest retailer, plans to sell 1.5 billion euros (US$2.3 billion) of property this year as billionaire Bernard Arnault and Colony Capital LLC become its biggest shareholders.

Chief Executive Officer Jose Luis Duran said yesterday that the supermarket owner is in talks with "several private investors" and real estate would become Paris-based Carrefour's "second business." The retailer also reported second-half profit was little changed yesterday amid French discounting.

Carrefour rose as much as 4.4 percent in Paris trading after the Halley family said it would not vote as a bloc, freeing members to sell their shares. The family initially resisted demands by Arnault and Colony to sell property, and has lost half its investment since combining its Promodes SA chain with Carrefour almost a decade ago. Carrefour still plans an initial public offering for Carrefour Property, though not before 2009. Arnault and Colony "are likely to want to restructure the company" now that the Halleys have dissolved their pact, said Chris Hogbin, an analyst at Sanford C. Bernstein in London. "I think that is what the shares are responding to."

Carrefour rose 2.02 euros to 48.46 euros at 1:36pm in Paris trading. The stock is still down nine percent this year, compared with a 4.3-percent gain by Wal-Mart Stores Inc, the only retailer of greater size.

Arnault, France's richest man, and Colony Capital LLC, a Los Angeles-based private-equity investor, said they plan to "exploit the group's ability to create value" as Carrefour struggles with stagnant sales in France.

Their Blue Capital venture bought 9.1 percent of Carrefour a year ago and will become the biggest investor on April 15, when the dissolution of the Halleys' pact takes hold and Carrefour holds its annual shareholder meeting.

Family members currently control 13 percent of Carrefour shares and 20 percent of its voting rights. Robert Halley, the patriarch who became chairman last year, plans to retain his title. The family will lose its two other board seats.

Duran said during a press conference in Paris yesterday that Carrefour plans to sell up to 1.5 billion euros of real estate by the end of 2008 to private and institutional investors.

Second-half profit was unchanged at 1.57 billion euros, according to Bloomberg News calculations, and full-year operating profit in France fell 5.7 percent amid discounts by rivals such as Groupe Auchan SA.

Full-year profit rose 1.4 percent to 2.3 billion euros. Net income from recurring operations rose 0.7 percent to 1.87 billion euros, compared with the 1.9 billion-euro average compiled by Bloomberg from 14 analyst estimates. Carrefour reiterated its 2008 target of growing operating profit faster than sales.