Leading Tesco Shareholder Suggests Ditching Fresh & Easy

Just days before Tesco chief executive Phil Clarke unveils his plans for reviving the chain, its leading shareholder suggested it should unload its U.S. Fresh & Easy chain and focus solely on its U.K. operations.

According to published reports, Richard Black at Legal & General Investment Management, Tesco's third biggest shareholder with a 4 percent stake in the grocer, also suggested the company divest its banking operations to focus on its core grocery business.

Black said that Tesco should think about what it wants to be and then focus on capital allocation and return on capital.

Fresh & Easy did not comment on the matter, which comes amid a major culture change Clarke is expected to reveal for Tesco later this week.