FT: Ahold To Sell US Foodservice, Reduce Debt

Jun 04, 2003
George Anderson

By George Anderson

If you own a company burdened by accounting scandals, depressed share prices
and approximately $14 billion in debt, what do you do?

If you’re Ahold, you try to sell off some of the assets that caused your problems
in the first place. According to a Financial Times report, Ahold’s interim
chief financial officer, Dudley Eustace, and other executives have mapped out
a strategy to reduce its debt and regain credibility in the financial market
beginning with a sale of US Foodservice.

Ahold had no comment on the report.

Moderator’s Comment: Should Ahold sell US Foodservice?

An unidentified source told the Financial Times, “They
have been called by everyone in the venture capital world and have held meetings
and listened politely. But it is premature to talk about selling because Ahold
first needs to get to the bottom of the [fraud] situation and that takes time.”
Anderson – Moderator

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