Dave Lewis might be tempted to dodge crisis at Tesco, but he’d do better facing up to the truth September 28, 2014 Dave Lewis found himself face to face with some wicked problems last week. Tesco’s new chief executive had only been in the job for a matter of days when he was confronted with an accounting scandal, dire growth forecasts, unhappy investors and irate politicians. The kind of wicked problems Lewis faces are common in business. [...]
Ukip party conference 2014: Three reasons Ukip might have the best brand in politics September 26, 2014 After Ed Miliband’s much-maligned slip-ups, this weekend it’s Nigel Farage’s turn to show the world he’s a man of the people, at the Ukip party conference. Farage may be mocked by some – but during his tenure as its leader, he has transformed it from a party on the margins of the political system [...]
Tesco’s week from hell: £250m black hole, 16 per cent fall in share price since Friday September 26, 2014 Was this the week Tesco hit rock bottom? Having discovered a huge black hole in its finances, shares have fallen from Friday's closing price of 229.6p, to a low of 191.23p in early morning trading today. That's a fall of almost 17 per cent. Here's a handy, cut-out-and-keep guide to Tesco's week from hell Monday [...]
Sports Direct’s share price tumbles after Tesco investment September 26, 2014 Shares in Sports Direct were down again this morning, following founder Mike Ashley's decision to take out a put option on Tesco yesterday. The retailer's share price has reached a low of 610p, having opened at 636.5p. It continued a tumble that started yesterday, when shares reached a high of 670p. Is it [...]
Sports Direct makes bet with stake in Tesco September 25, 2014 MIKE ASHLEY has made a £43m bet that shares in ailing supermarket Tesco will bounce back after the discovery of a £250m black hole in its accounts sent shares tumbling 16 per cent this week. The billionaire’s retail empire Sports Direct has entered into a put option agreement with Goldman Sachs over 23m shares in [...]
Michael O’Leary proves he’s still good for laughs September 25, 2014 RYANAIR has the best shareholder meetings. Despite Michael O’Leary’s decision to “step out of the public spotlight”, he’s still good for quips when he gets in front of a crowd. Yesterday’s meeting in Dublin was no different. Tesco was first to get it in the goolies. When speaking about chief marketing officer Kenny Jacobs, O’Leary [...]
London Report: Bank policy and property fears weigh on FTSE September 25, 2014 Britain’s FTSE 100 fell yesterday to a six-week low as concern that Britain and the United States would soon tighten monetary policy pulled down mining and energy stocks, as well as companies exposed to the UK property market. Shares in basic materials and energy companies knocked a combined 35 points off the FTSE 100, which [...]
As BlackRock sells Tesco shares, has the grocer been permanently damaged by recent events? September 25, 2014 James McGregor, director of Retail Remedy, says Yes. Tesco’s admission this week that it had overstated its declining profits by £250m was one hell of a story. But the accounting cock-up and subsequent dumping of Tesco shares by BlackRock are really only footnotes in the protracted obituary of this once all-conquering retailer. The hegemonic Tesco [...]
Tesco bosses and ex-chief Philip Clarke could now face a grilling from MPs on the Business Select Committee September 25, 2014 Already facing scrutiny from the public, investors and financial regulators, Tesco may now have to explain itself to parliament. Business Select Committee chair Adrian Bailey called Tesco’s accounting error “stratospheric” and said bosses at the supermarket could face a grilling from MPs. Tesco chief Dave Lewis, chairman Sir Richard Broadbent, ex-chief Philip Clarke and auditor [...]
What is a put option and how is Mike Ashley using it to bet on Tesco? September 25, 2014 Mike Ashley's Sports Direct has taken a punt on Tesco by entering into a put option agreement with Goldman Sachs. But what exactly is a put option and how is he using it to make money? In short, Sports Direct is selling the option to Goldman, meaning that if the share price goes up, [...]