Breaking News
Close
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Ahold Delhaize urged to put poison pill decision to vote

Stock MarketsApr 05, 2018 13:50
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
Ahold Delhaize urged to put poison pill decision to vote

AMSTERDAM (Reuters) - Dutch-Belgian supermarket operator Ahold Delhaize (AS:AD) should put any decision about renewing its poison pill structure to a vote by shareholders, the association for Dutch retail investors (VEB) said on Thursday.

The VEB joins activist investor CIAM in wanting a vote on the matter, after CIAM wrote in a letter to management made public last week that the poison pill structure depresses shareholder value in Ahold. [L8N1RA5AB]

"Shareholders are consulted when they need capital, but when a decision needs to be taken about the future of the company we are told to keep our mouths shut" VEB director Paul Koster said in a statement.

Like most Dutch blue chip companies, Ahold has a governance structure that enables management to fend off potential hostile suitors. Ahold's agreement runs out at the end of the year and the company has said management will decide about its possible renewal without seeking shareholder approval.

However, the issue will be on the agenda at Ahold's April 11 annual shareholders meeting.

BERNSTEIN BACKS CIAM, VEB

"We think those types of option agreements are bad corporate governance," Bernstein Research, which holds an "Outperform" rating on the stock, wrote in a note to investors on Thursday. Bernstein does not hold a stake in Ahold while its parent firm holds a stake of about 0.08 percent.

It said it understands why Ahold's management would want protection when facing a hostile move, but called the option "a disproportionally big power".

It "takes away control from shareholders at moments in time when their views are most relevant and when shareholders are most likely to want to express their views", Bernstein analysts wrote.

CIAM, the VEB and Bernstein have asked Ahold to put the poison pill structure renewal up for a shareholder vote.

The issue is especially topical as consolidation in the U.S. food retail market, where Ahold does two-thirds of its business, is heating up.

Competition from Amazon (O:AMZN), which acquired Whole Foods supermarkets last year, has sparked market speculation of further consolidation, with suggestions that Ahold could team up with another U.S. player such as Kroger (N:KR).

Ahold on Thursday named Frans Muller, who oversaw the integration of Ahold and Delhaize's U.S. businesses when they merged in 2015, as chief executive when current CEO Dick Boer retires on July 1.

Muller was CEO of Belgium's Delhaize until Ahold acquired it in 2015 for 9.3 billion euros ($11.4 billion).

Ahold Delhaize urged to put poison pill decision to vote
 

Related Articles

Global automakers face electric shock in China
Global automakers face electric shock in China By Reuters - May 26, 2022

By Norihiko Shirouzu BEIJING (Reuters) - If global automakers think they can extend their dominance in China into the electric era, they may be in for a shock. Kings of the...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
DOWNLOAD APPApp store
Investing.com
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
or
Sign up with Email