AHOLD TO DIVEST SOUTH AMERICAN OPERATIONS
id last week it intends to divest its operations in four South American countries -- Brazil, Argentina, Peru and Paraguay -- to concentrate on its mature and most stable markets and to generate funds to pay down debt. In February, the company said it was in negotiations to divest its holdings in Chile. Ahold said it has set no timing for the divestments. In Brazil, the company owns two supermarket/hypermarket chains -- Bompreco, which has 119 stores, and G. Barbosa, with 32 stores -- and a credit-card company, Hipercard. Together they generated 2002 sales of $1.4 billion. In Argentina, Ahold owns Disco S.A., which had 2002 sales of $818 million in its 263 stores. In Peru, the company's 32 stores had 2002 sales of $261 million. In Paraguay, Ahold's 10 stores had 2002 sales of $39 million.
VISA/MASTERCARD RULING FAVORS MERCHANTS
NEW YORK -- A U.S. District Court judge here ruled last week in favor of five of the eight motions brought by the more than 5 million U.S. merchants suing Visa U.S.A., Foster City, Calif., and MasterCard International, Purchase, N.Y., for allegedly violating U.S. antitrust law. Judge John Gleeson also denied all of Visa and MasterCard's motions, including MasterCard's request filed last month for a separate trial. Lloyd Constantine, the New York attorney who is lead counsel for the merchants, said, "Around 70% of this trial was decided in the merchants' favor in this summary judgment. That leaves 30% and the relief to be decided." At issue is the card companies' requirement that merchants accept their cards for all transactions, including signature debit-card transactions, which the merchants maintain are more expensive to them and consumers. The merchants' case is scheduled to go on trial before Gleeson on April 28. Daniel Tarman, vice president, Visa, said, "We are now focused on going to trial and defending the consumers' right to choose how to pay at the checkout counter." Commented Noah Hanft, general counsel, MasterCard, "We're confident that once the jury has evaluated all the evidence, it will uphold this pro-competitive rule, and protect this critically important consumer benefit."
KMART NAMES NEW BOARD, CUTS HQ STAFF
TROY, Mich. -- Investors, creditors and lenders last week named an entirely new board to manage Kmart Corp. here when the company emerges from Chapter 11 bankruptcy protection, according to published reports. Julian Day, currently Kmart's president and chief executive officer, was named to the board. The investors named Edward S. Lampert, chairman and CEO, ESL Investments; William Crowley, president and chief operating officer, ESL Investments; Steven Mnuchin, retired Goldman Sachs executive; and Thomas Tisch, a managing partner with a private investment firm in New York. The lenders named Anne Reese, a former chief financial officer at ITT Corp., and Brandon Stranzl, a senior research analyst with Third Avenue Management. The creditors named E. David Coolidge III, CEO of a private investment firm in Chicago, and William Foss, a San Francisco attorney. Meanwhile, Kmart said last week it will eliminate approximately 400 positions at company headquarters and 123 corporate support positions across the country. The company also said it would eliminate another 137 positions that are currently open. The company, which said its stores and distribution centers will not be impacted by the layoffs, noted that it expects to achieve savings of $90 million in fiscal 2003 and $150 million annually through this initiative.
