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16-10-2014, 07:48 PM
Buffett cuts Tesco stake
DOW JONES NEWSWIRES WITH A STAFF REPORTER OCTOBER 16, 2014 10:00PM
Warren Buffett's Berkshire Hathaway Inc on Monday reduced its stake in Tesco PLC to less than 3 per cent, meaning Mr Buffett's "huge mistake" on the embattled UK supermarket chain just got smaller.
Berkshire held 3.98 per cent of Tesco, which announced the deal Thursday, as of September 24, according to Tesco's website, meaning it has since sold shares worth at least $US232 million at Monday's midmarket price.
Tesco, whose shares have lost almost half their value this year amid steady market-share declines, is investigating a £250 million ($US399.9 million) overstatement of its forecast first-half profit. The UK Financial Conduct Authority is also probing the error.
"I made a mistake on Tesco," Mr Buffett said in a television interview this month, after the company revealed the overstatement. "That was a huge mistake by me."
Tesco shares were down a penny, or 0.5 per cent, at 174 pence in morning London trading, valuing the company at £14.13 billion.
DOW JONES NEWSWIRES WITH A STAFF REPORTER OCTOBER 16, 2014 10:00PM
Warren Buffett's Berkshire Hathaway Inc on Monday reduced its stake in Tesco PLC to less than 3 per cent, meaning Mr Buffett's "huge mistake" on the embattled UK supermarket chain just got smaller.
Berkshire held 3.98 per cent of Tesco, which announced the deal Thursday, as of September 24, according to Tesco's website, meaning it has since sold shares worth at least $US232 million at Monday's midmarket price.
Tesco, whose shares have lost almost half their value this year amid steady market-share declines, is investigating a £250 million ($US399.9 million) overstatement of its forecast first-half profit. The UK Financial Conduct Authority is also probing the error.
"I made a mistake on Tesco," Mr Buffett said in a television interview this month, after the company revealed the overstatement. "That was a huge mistake by me."
Tesco shares were down a penny, or 0.5 per cent, at 174 pence in morning London trading, valuing the company at £14.13 billion.