Dutch supermarket-owner Royal Ahold is in talks to acquire Alliant Foodservice for about $1.5 billion in cash, plus the assumption of about $700 million in debt, the Wall Street Journalsaid in its online edition today.
But the talks were at a delicate stage and could fall apart, sources said. If the two sides finalised terms, a deal could be wrapped up by early next week, the newspaper said.
After reporting second-quarter earnings yesterday, Ahold said it was in active takeover talks with various firms, but chief executive Mr Cees van der Hoeven declined to comment on their identities or where they are based.
Ahold was in talks with banks to secure financing for the Alliant deal, the report said. But Alliant has spoken with other bidders, the newspaper said.
Alliant is owned by New York buyout firm Clayton, Dubilier & Rice, which declined to comment, the report said.
The buyout firm acquired the business, then known as the food-service division of Kraft General Foods, from Philip Morris in 1995 for about $690 million, the report said.
An Alliant spokeswoman said she did not know anything about the talks.
The newspaper quoted an Ahold spokesman as saying: "I would be very careful with that, because there is only a transaction if there is an agreement between two parties and ink on the paper, and if that would be the case, we would announce it".