Tesco is coming under increasing pressure to slash its dividend in order to free-up cash to help it compete against low-cost rivals, with a leading shareholder speaking out over the weekend and analysts predicting a major cut to its payout.
Tesco's incoming chief executive Dave Lewis faces an uphill struggle to turn around the business in the face of increasing competition from low-cost competitors such as Aldi and Lidl which have eaten into sales. Shares in the group have tumbled over the last 12 months, down a third against a rising FTSE 100. One solution for Lewis - who joins in six weeks - may be to cut the group's dividend to save cash, with a leading investor voicing his support for such a move over the weekend. Speaking to the Sunday Times, David Herro of Harris Associates, which owns 3% of Tesco, said: "In gen...
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