Ahold Reportedly Seeking Bids for U.S. Foodservice
AMSTERDAM -- Ahold here will invite bids for its Columbia, Md.-based U.S. Foodservice division in early 2007, the retail conglomerate's chief executive Anders Moberg told a Dutch newspaper last week.
Ahold said last month that it would sell the financially troubled business, but didn’t say when a sale might take place.
Private equity firms Clayton, Dubilier & Rice, and Kohlberg Kravis Roberts & Co. have reportedly made a preliminary offer earlier this month to acquire U.S. Foodservice. Although other firms are said to be interested as well, the CD&R/KKR consortium appeared to be at the head of the pack, Reuters reported.
Although he gave no details on a possible sale, Moberg confirmed to De Telegraaf that there was "a lot of interest."
In other Ahold news, the company last week filed a preliminary legal defense against a class action claiming that U.S. Foodservice engaged in an illegal kickback system to overcharge customers. Ahold plans to further file a "substantial" defense document next month, e.v.p. Peter Wakkie told the Financial Times.
Last year the company settled a class action with U.S. pension funds for $1.1 billion in connection with allegations that U.S. Foodservice profits were overstated by the false accounting of promotional allowances.
Ahold said last month that it would sell the financially troubled business, but didn’t say when a sale might take place.
Private equity firms Clayton, Dubilier & Rice, and Kohlberg Kravis Roberts & Co. have reportedly made a preliminary offer earlier this month to acquire U.S. Foodservice. Although other firms are said to be interested as well, the CD&R/KKR consortium appeared to be at the head of the pack, Reuters reported.
Although he gave no details on a possible sale, Moberg confirmed to De Telegraaf that there was "a lot of interest."
In other Ahold news, the company last week filed a preliminary legal defense against a class action claiming that U.S. Foodservice engaged in an illegal kickback system to overcharge customers. Ahold plans to further file a "substantial" defense document next month, e.v.p. Peter Wakkie told the Financial Times.
Last year the company settled a class action with U.S. pension funds for $1.1 billion in connection with allegations that U.S. Foodservice profits were overstated by the false accounting of promotional allowances.