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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n