Tesco, the British grocery retailer chain suffered another setback today after Warren Buffett cut his stake in the company by £300 m.
Recent stock market filings show us that Buffett and Berkshire Hathaway cut their holding last week in the company from 4.98 pc to 3.98 pc. Berkshire Hathaway offloaded Tesco derivatives that represented 80m of the company voting rights.
Berkshire Hathaway first invested in became a shareholder in Tesco in 2006. It is currently one of the biggest Buffett investments outside of the United States.
Berkshire Hathaway decided to decline sharing reasons for making this move when asked about it last night. They actually made the trade on October 16, which is the same exact day that Berkshire Hathaway announced to buy the IMI drink dispensing business for £690 m.
Earlier in the month, Tesco reported an unexpected fall in like for like sales across all of its international businesses (10 of them), and this included the UK, as the first half-year pretax profits dropped by 24 pc to £1.39 bn.