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AHOLD STOCK PLUNGES AFTER SEARCH

ZAANDAM, Netherlands -- A dramatically timed weekend search of Ahold's corporate headquarters here by the Dutch public prosecutor is unlikely to unearth new problems at the scandal-tinged retailer, according to industry sources.Still, on July 7, the first day of trading following the search, Ahold's stock plunged by as much as 10% before recovering slightly by the market's close. After that initial

ZAANDAM, Netherlands -- A dramatically timed weekend search of Ahold's corporate headquarters here by the Dutch public prosecutor is unlikely to unearth new problems at the scandal-tinged retailer, according to industry sources.

Still, on July 7, the first day of trading following the search, Ahold's stock plunged by as much as 10% before recovering slightly by the market's close. After that initial fall, the stock remained relatively stable through late last week.

Didier Rabattu, London-based head of global food retailing for Deutsche Bank, Frankfurt, Germany, told SN that the public prosecutor was probably playing catch-up with the company's internal investigation -- completed earlier this month -- rather than acting on new information.

"Usually, justice is behind the curve," Rabattu said. "I don't think they're going to find something that the company hasn't found."

A source close to Ahold told SN the prosecutor's move came as no surprise to the company. He added that the Ahold executives the investigation is focusing on are no longer with the company.

Ahold said last week it "has given full cooperation" to the Dutch prosecutor's office in the same manner "it has been doing and will continue to do with U.S. Securities and Exchange Commission and the U.S. Department of Justice in connection with their ongoing investigations."