Chile retailer Cencosud seeks $200 mln cap increase

SANTIAGO, Oct 11 (Reuters) - Chilean retailer Cencosud CEN.SN said on Saturday it would propose a $200 million capital increase to shareholders to help shield itself from global financial turmoil.

Cencosud, one of Latin America's largest retailers, said it wanted to safeguard itself from any increase in costs in markets where it operates, and would call an extraordinary shareholder meeting for Oct. 30 to make the proposal.

"At times of uncertainty, the liquidity and solidity of the company are very relevant," Chief Executive Laurence Golborne said in a statement. "(The capital increase) would give us greater flexibility to be independent from the financial system if the cost of credit rises."

Cencosud runs supermarkets, department stores and other stores that sell housewares and construction materials, is headquartered in Santiago and operates in Argentina, Brazil, Colombia, Chile and Peru. (Reporting by Antonio de la Jara; Editing by Eric Beech)