ID NEWS: Buyers said to be interested, if Ahold seeks to sell units

Carrefour SA, a major European rival of Royal Ahold, Zaandam, The Netherlands, and buyout firms such as Kohlberg Kravis Roberts & Co., may bid for Ahold businesses, according to the Bloomberg news service.

Carrefour has indicated it would look into buying units "if approached," while Kohlberg Kravis, the world's biggest buyout firm, is said to be interested in bidding on U.S. assets.

Ahold continues to struggle with problems sparked last week by an announcement of at least $500 million in profits that had been overstated, as a result of accounting irregularities discovered at its U.S. Foodservice subsidiary. The latest: Lenders are reported to have frozen the remainder of a $2-billion line of credit, while Ahold negotiates a new loan expected to come with restrictions typical for borrowers that have "strained financial credibility"-this from the Baltimore Sun.

Investors conjecture that Ahold will have to sell businesses to repay more than $13 billion of debt. In the last week, Ahold has stated that it expects to sell "peripheral assets" but is not prepared to sell larger business units such as USF, says Bloomberg.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

Why social media, and not price, is behind Starbucks' sales problems

The Bottom Line: The coffee shop chain lost momentum quickly in November. That was too fast to be explained by consumer reaction over the prices of its beverages.

Financing

Franchisors who want faster remodels should reach into their pocketbooks

The Bottom Line: Burger King is spending $550 million to get more of its restaurants remodeled, not counting its own upgraded restaurants. More brands should do this.

Leadership

Meet the restaurant fixer who now owns Etta

Tech entrepreneur Johann Moonesinghe suddenly finds himself leading a growing group of restaurants. His secret? He doesn't expect to make a profit.

Trending

More from our partners