M&S and Ocado Deal Splits Market Opinion

Marks & Spencer shareholders weren't impressed with the rights issue and dividend cut which bought half of Ocado's UK retail business for £750 million on Wednesday

David Brenchley 28 February, 2019 | 7:12AM

Marks & Spencer share price, Ocado share price, online shopping, dividends, rights issue

A £750 million deal for Marks & Spencer (MKS) to buy half of Ocado’s (OCDO) UK retail business split investor opinion, with respective share prices going in opposite directions on Wednesday.

While seen as widely positive for e-commerce player Ocado, for M&S the impact is rather less clear with a £600 million rights issue announced in order to finance the deal as well as a 40% dividend cut.

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David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk

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