Raw Story By Rohan Minogue, Amsterdam- The Netherlands is not new to foreign capital, but concerns were raised when it became known that US and British hedge funds had joined forces to pressureAhold, a grocer with a tradition stretching back 120 years. “Investment companies buy out a business, only to strip it bare like a plague of locusts,” Economy Minister Joop Wijn told nationaltelevision.
His remarks were prompted by the attempt by Paulson of the United States and Britain’s Centaurus to get Ahold to sell off its low- margin US retail concerns, such as Giant and Stop&Shop.
The two hedge funds have bought just 6.4 per cent of Ahold, but hope to garner support from other major shareholders in their bid to get management to change tack.
The Dutch media suggested the move was an attempt to drive up the share price in the short-term with the aim of cashing in immediately and with little concern for the company’s long-termprospects.
