Dutch retailer Ahold has turned to the former boss of Swedish furniture chain Ikea to lead it out of its current troubles.

Ahold's previous chief executive, Cees van der Hoeven, resigned after the company admitted in February to overstating profits at its US unit Foodservice by more than $500m.

His replacement, Anders Moberg, ran Ikea from 1986 to 1999, during which time the Swedish firm underwent a massive international expansion.

Investors welcomed the news, following as it did an announcement that Ahold's Malaysian subsidiary, TOPS, is being sold to Dairy Farms International. By 0930GMT, Ahold shares were up almost 20% at 4.80 euros.

Under the microscope

After leaving Ikea, Mr Moberg ran international affairs for US group Home Depot from 1999 until last year.

Shareholders will be hoping his appointment will give the firm a lift, as since February's revelations the company's shares have plunged from more than 10 euros to well below 4 euros.

Dutch prosecutors have started a probe into the accounting irregularities, which Dutch newspapers believe to be connected with alleged profit mis-statements at Swedish joint venture ICA.

A decision on whether any prosecutions are necessary is expected within weeks.

The Securities and Exchange Commission in the US is also taking an interest, and a grand jury probe is also under way.