Dutch retail group Ahold is reportedly holding off from meeting with hedge funds Paulson & Co. Inc. and Centaurus Capital, which are pushing for a break-up of the conglomerate.
The two funds, which together control 6.4% of Ahold, believe a break-up would increase the group’s market value to more than EUR9 (US$11.54) per share, giving the company a total value of EUR14bn, against its current value of EUR11.5bn.
According to a report in The Times, the two funds have been attempting to arrange a meeting with Ahold’s top executives for the past six months. Primarily, the two funds would like to see Ahold divest its US operations and become a Europe-focused retailer.
The report also said that the two funds were seeking support for the break-up from other institutional investors, including US fund Brandes, Capital Research and Management and Fortis.
Ahold is in the midst of a review of its operations and is due to report its conclusions by the end of the year.