Tesco shares rise as ready meal found to contain 60% horsemeat
City Index February 12, 2013 10:15 PM
<p>Tesco’s shares have jumped as the supermarket removes 60 per cent horsemeat bolognese from its shelves.</p>
Shares in Tesco have regained some ground today (February 12th) amid the ongoing horsemeat scandal sweeping the grocery industry.
This is despite the fact the UK's number one supermarket's leading range of Everyday Value ready meals is found to be caught up in the contamination issue, with its spaghetti bolognese product containing 60 per cent horsemeat, according to DNA results.
The meal – which was withdrawn from sale today – came from the same factory in France that produces Findus beef lasagne, which received much media coverage over the weekend for the high quantities of horsemeat present.
Tesco Group technical director Tim Smith stated: "The frozen Everyday Value Spaghetti Bolognese should contain only Irish beef from our approved suppliers. The source of the horsemeat is still under investigation by the relevant authorities."
As such, environment secretary Owen Paterson has told MPs of government plans to test all processed beef products in the UK.
At 15:50 GMT, shares in Tesco rose by 0.8 per cent to a unit value of 371.00p.
Learn all about spread betting strategies and individual shares at City Index.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.