More M&A: Tesco/Ahold, Unilever

Rumors are circulating that Tesco could be about to buy Ahold (or at least Ahold's European holdings). Ahold, of course, has been in trouble ever since their trade allowance accounting scandal a couple years ago, and it has been selling divisions ever since. A takeover by Tesco would create a behemoth (I haven't seen any numbers on what the combo would be, but I think it should be enough to overtake Carrefour and move into the #2 slot worldwide.

There's more on the Tesco/Ahold rumor here, as well as speculation that Unilever may be the subject of a leveraged buyout.

Update Sunday: Here's another article with a good deal of analysis on the deal. It mentions in passing that some investors think Tesco may be more likely to go after Carrefour.

Tesco shares fell three pence to 315p yesterday amid market rumours that the company may make a significant acquisition in Europe. Brokers are reported by The Times to have been unconvinced by suggestions that the retailer will join with Kohlberg Kravis Roberts to bid for Ahold, with others suggesting Carrefour as a more credible target.