Buffett raises stake in Tesco

City A.M. Reporter
Billionaire US investor Warren Buffett has nudged up his stake in Tesco, according to Reuters sources.

Analysts said the move could be interpreted as a vote of confidence in new chief executive Phil Clarke.

Buffett's Berkshire Hathaway last month bought around 34m Tesco shares for about £120m, lifting its stake in the British supermarket group to 3.64 per cent from 3.21 per cent, the person said.

Tesco declined to comment.

Berkshire Hathaway could not immediately be reached for comment.

Earlier this year, Buffett caused a stir by saying he thought Tesco should "look hard" at its loss-making Fresh & Easy chain in the United States.

Clarke, who succeeded long-serving predecessor Terry Leahy in March, has laid out a plan for the chain to significantly reduce its losses this financial year and break even towards the end of fiscal 2012-3, and made changes such as introducing fresh bakery products and coffee and testing a loyalty card.