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Last Updated: Wednesday, 7 January, 2004, 14:13 GMT
Ahold faces court over accounts
CEO Anders Moberg
New CEO Anders Moberg is hoping to restore investor confidence
Shareholders in scandal-hit Dutch supermarket Ahold are taking the firm to court over the billion-euro hole in its books.

The firm has already reissued its accounts for the year 2002, when it lost 1.21bn euros ($1.5bn; �850m).

But a shareholder group wants Ahold to do the same for 1998-2001, to see if the accounting irregularities found in 2002 were repeated in earlier years.

Ahold says the case is without merit, and will be "vigorously opposed".

'Black hole'

Ahold's accounting troubles cost it a chief executive and have left it with about 10bn euros of debt.

The debts stem from the firm's rapid expansion in the 1990s.

But the accounting trouble the firm identified in its 2002 results - which were delayed for months - focus solely on a US subsidiary, Foodservice.

Now VEB, the Dutch shareholders' association bringing the court action, fears there may have been mis-statement of figures from European subsidiaries as well.

Its members saw their shares lose three quarters of their value as a result of the scandal.

Other legal action may prove more damaging in financial terms, as US class-action suits gather momentum.




SEE ALSO:
Ahold wins shareholder approval
26 Nov 03  |  Business
Ahold returns to profit
07 Nov 03  |  Business
Ahold scandal: The final bill
01 Jul 03  |  Business
Ahold admits 1.2bn euro loss
02 Oct 03  |  Business


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