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A Dutch newspaper, Het Financieele Dagblad, reports that in merger talks between Netherlands-based Ahold and Belgium-based Delhaize, Ahold’s management has agreed that if a merger is consummated, Brussels would be the headquarters for the new company, with a CEO picked by Delhaize.

Ahold would be in charge of picking a CFO for the merged company, as well as a chief for the company’s European operations.

According to reports in the Financial Times, Ahold has hired Goldman Sachs to advise management in merger talks.

In addition, according to the report, the talks – which are not characterized as being near completion – also have begun creating a corporate structure that would be implemented in the event of a merger.
KC's View:
As has been stated exhaustively – some might say ad nauseum - the reported talks between Ahold and Delhaize were at least in part prompted by a call by two dissident investors in Ahold to divest the company’s US operations as a way of maximizing shareholder value.

One wonders if a merger would be seen as accomplishing the same result.

One also wonders if the dissidents will perceive a merger as Ahold thumbing its nose at what they wanted.