Tesco shares slump again on rights issue rumours

Tesco shares have fallen as much as 4% on reports it is considering a rights issue to shore up its balance sheet.

The stock dropped this morning after FTAlphaville reported the supermarket is considering a rights issue following a month in which it rushed in new management and admitted a £250m accounting error. Analysts had suggested a rights issue was a possibility earlier this week, but today's report sent the stock down further: after initially dropping to 170p a share, a fresh 11-year low, Tesco was down 2.2% at 174.3p by early afternoon today. The company's shares have now fallen 49% year-to-date, making it the worst performer on the FTSE 100. Yesterday major investor Warren Buffett told CNB...