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AMSTERDAM -- A former executive board member of retail conglomerate Royal Ahold, based here, said in a Dutch publication that a breakup of the company was inevitable because of a lack of cohesion among its units, according to published reports.
Theo de Raad also noted that Ahold's problems couldn't be swiftly resolved. "If it takes too long to repair things, the management must take action to ensure the continuation of the different company parts. It is better to do it yourself, than if others do it for you," he told the publication. He further observed that Ahold has tried to bring companies into the corporate fold, "but without much success."
Ahold, which is in the midst of an extensive restructuring program in the wake of a disastrous accounting scandal, generates 70 percent of its sales in the United States as the owner of such banner Giant-Landover, Giant-Carlisle, and Stop & Shop.
Analysts don't anticipate Ahold to split up in the near future, but according to some observers, the possibility of such an outcome has boosted the company's share price over the past year.
Ahold, which will report its annual results March 29, has offered no comment on de Raad's comments.