Demands for Europe-only business
A group of shareholders in Dutch retail giant Ahold has called for the group to sell its US division and become a purely European operation.

Hedge funds Paulson and Centaurus Capital, which have a combined stake of 6.4 per cent, said the retailer could increase its share price by up to a quarter if it restructured and got rid of its US wholesale and retail divisions.

They said: 'We believe keeping Ahold's disparate retail and wholesale interests together diminishes shareholder value and limits the operating potential of the individual businesses.'

At present, more than two-thirds of the group's business is located in North America.

Paulson and Centaurus Capital added: 'The company needs drastic strategic action to deliver shareholder value.'

In June, the retailer revealed first quarter sales up 8.6 per cent to Eu14 billion (£9.43 billion), but US sales were weaker than expected. At US grocery chains Stop & Shop and Giant-Landover, sales were down 1.3 per cent and 2.5 per cent respectively. Like-for-like sales at grocer Tops fell 5.5 per cent.

Sales at Ahold's Dutch division Albert Heijn rose 4.9 per cent to Eu2.1 billion (£1.41 billion).

Ahold operates 4,000 stores in Europe and the US.

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