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(Noon): Shares in Tesco fell a further 1.6% following news that a major shareholder in the UK supermarket giant had cut its stake. | |
Tesco was one of the biggest fallers in the FTSE 100, with the index down 3.62 points at 6,816.13. | |
The Telegraph reported that Harris Associates had cut its stake in Tesco from more than 3% to about 1.4%. | |
And in an email to the FT, Harris criticised the UK supermarket giant for operating an "incoherent strategy". | |
On Friday, Tesco issued its second profit warning in two months and cut its interim dividend by 75%. | On Friday, Tesco issued its second profit warning in two months and cut its interim dividend by 75%. |
The comments from Harris Associates come on the day that Tesco's new chief executive Dave Lewis begins his job, after his start date was brought forward by the supermarket. | |
"If new Tesco CEO Dave Lewis was under any illusions that the markets would afford him a 'honeymoon period' upon taking over the reins at the UK food retailing giant, then this morning's share price action should have put paid to that," said Alastair McCaig, market analyst at IG. | |
Shares in Tesco's rivals were also hit, with Morrisons down 2.1% and Sainsbury's 1.1% lower. | |
HSBC shares were down 1%. One of the UK's most high-profile fund managers, Neil Woodford, said he had sold his stake in HSBC over worries of "fine inflation" in the banking sector. | |
"I am worried that the ongoing investigation into the historic manipulation of Libor and foreign exchange markets could expose HSBC to significant financial penalties," he said. | |
ITV shares rose 2.2% on speculation it could be a takeover target for Liberty Global, the owner of Virgin Media. | |
The Telegraph reported that Liberty Global was canvassing support from major ITV shareholders after it bought a 6.4% stake in the broadcaster this summer. | The Telegraph reported that Liberty Global was canvassing support from major ITV shareholders after it bought a 6.4% stake in the broadcaster this summer. |
In the FTSE 250, shares in Perform - which supplies online sports news and clips to media groups and bookmakers - jumped 26% after investment group Access Industries said it planned take full ownership of the firm. Access already owns 42.5% of Perform. | |
On the currency markets, the pound slipped slightly after the release of weaker-than-expected manufacturing PMI figures. | |
However, the pound was up 0.1% against the dollar on the day at $1.6614 and was 0.06% higher against the euro at 1.2647 euros. |