Shares in the Dutch retail group Royal Ahold NV rose sharply this morning (12 June) on the back of weekend newspaper reports that a group of hedge funds is increasing its stake in the company with a view to breaking it up.
Go deeper with GlobalData
Ahold shares were up by 4.31% to EUR6.53 (US$8.23) in early trading.
The reports regarding a possible break-up of Ahold appeared in the newspaper The Business at the weekend. The paper said that the group of hedge funds was led by Centaurus, which now has around a 4% stake in the retailer,
Rabo Securities analysts Patrick Roquas and Karel Zoete said the news would increase pressure on Ahold’s management to improve results, divest of non-core activities and at least investigate the possibility of breaking the company up.
The break-up of Ahold has been mooted before without being pursued further, but Delta Lloyd Securities analyst Pascale Nachtergaele said he does not “discount the possibility of it actually happening this time”.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
