Seneca Increases Stake in M&S After Share Price Fall

Marks & Spencer's £750 million Ocado deal was not welcomed by the market, but multi-asset house Seneca added to their position in the retailer

David Brenchley 1 March, 2019 | 12:25PM

Marks & Spencer, M&S share price, M&S, Ocado, stocks, Ocado, right issue, dividend cut

Multi-asset house Seneca Investment Management added to its long-held position in retailer Marks & Spencer (MKS) on weakness Wednesday after its £750 million deal to buy half of Ocado’s (OCDO) UK retail business.

M&S said it would fund the deal with a fully underwritten £600 million rights issue, while cutting its dividend by 40% to a predicted 7.1p per share for 2018/19. The market clearly did not like the news, with shares falling almost 13% to close trading on Wednesday at a seven-week low 265p.

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David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk

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