8th Oct 2014 08:34
LONDON (Alliance News) - Several big institutional investors in Tesco PLC have signalled to the group that they would be willing to back a capital-raising plan of GBP1 billion to GBP2 billion in order to strengthen its balance sheet, The Times reported Wednesday.
A number of large investors in Tesco met informally on Tuesday, The Times said, and would support the company should it launch a rights issue in order to strengthen its position in the wake of the profit overstatement revealed last month.
The paper quoted a senior figure at the meeting saying that while he "wouldn't exactly say we were delighted" by the prospect of a rights issue, "there was general acceptance that a fundraising is going to be necessary".
http://www.thetimes.co.uk/tto/business/industries/retailing/article4229395.ece
By Sam Unsted; [email protected]; @SamUAtAlliance
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