Bidders line up for Ahold's US foods division - report.

(From AFX Europe (Focus))

LONDON (AFX) - Bids are being lined up for the US foodservice division of Dutch retailer Royal Ahold NV, with a decision on the sale expected later this month, UK newspaper The Business reported today.

The paper said the world's fourth-largest food retailer will decide in the coming weeks whether to begin the disposal process that would see the business either sold or floated.

Private equity and trade buyers are jockeying for position amid predictions that the Dutch chain, which is said to be in merger talks with its smaller Belgian rival Delhaize, is worth more broken open, it added.

The weekly quoted an unnamed source as saying: "Ahold is not going to be the ultimate owner of US Foodservice."

Another unnamed source said the private equity and trade buyers have had informal talks about US division but not directly with Ahold.

One of those expressing an interest in the division is South African food services group Bidvest, which bought Ahold's European wholesale business Deli XL last year, The Business said.