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Wednesday, 26 November, 2003, 14:25 GMT

Ahold wins shareholder approval

CEO Anders Moberg Shareholders of scandal-hit Dutch supermarket Ahold have approved the firm's plan to raise more cash.

Ahold will now sell as much as 3bn euros ($3.55bn) of new shares to existing holders of company stock.

New chief executive Anders Moberg has pledged to restore confidence after the company admitted Enron-style accounting irregularities earlier this year.

The company owes more than 10bn euros after a decade of expansion in the US and Latin America.

Existing shareholders

Ahold plans to sell as many as 621 million shares at 4.83 euros each.

More than 90% of investors voted to accept the proposal.

As well as issuing new shares, Ahold is selling assets and businesses in Europe and South America.

The company said on Wednesday that third-quarter operating profit fell 66% from a year earlier, missing analysts' forecasts.

The company's bottom line was hit by a drop in the value of the dollar. The US is Ahold's biggest market.

The shares dropped 2% to 8.09 euros in midday trading. rebounding from a drop of as much as 5%.


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Related to this story:
Ahold returns to profit (07 Nov 03  |  Business )
Ahold scandal: The final bill (01 Jul 03  |  Business )
Ahold angry brigade meet the new boss (14 May 03  |  Business )
Ahold admits 1.2bn euro loss (02 Oct 03  |  Business )

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