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AMSTERDAM - Royal Ahold NV on Thursday offered investors some relief by revealing that its accounting problems don't appear to be widespread through the company, Dow Jones newswires reports.
The news proved a welcome change for Ahold investors, who saw shares plummet 75 percent this week, as the company said Monday that it had overstated earnings by more than $500 million at its U.S. Foodservice unit.
Ahold also said Thursday that the investigation into its Argentine unit, Disco, has concluded and that there will be "no material impact on Ahold's financial results." Ahold named two new executives at Disco after some in management stepped down. Alfredo Carcia Pye, currently a manager at Ahold's Peruvian Santa Isabel unit, will act as chief executive; while Pieter de Nooij, now a member of Ahold's Latin America Support Group, will become chief financial officer.
An official at SNS Securities told Dow Jones that Ahold's difficulties are far from over given that it remains financially weak. He said the key question is whether Ahold will be able to fully use up an emergency credit facility, which was announced Monday.