Greencore shares hit by horsemeat scandal

Shares in Greencore fell today as British retailer Asda withdrew beef bolognese sauce supplied by the firm that tested positive for traces of horse DNA.

The Irish food group's stock fell by up to 22 per cent earlier today, the most it has dropped in 14 years, reducing its value by as much as £89 million.

However, the stock pulled back some of its losses on the London market, and was trading just under 10 per cent lower this afternoon.

Greencore became the latest company to become embroiled in the horse meat scandal when it confirmed it manufactured bolognese sauce that was found to contain horse meat. Asda withdrew three other Greencore products "as a precautionary measure" but they did not test positive for equine DNA.

In a statement, Greencore said the beef was supplied to it by the ABP Food Group's Nenagh plant in Co Tipperary. The Larry Goodman-controlled ABP also owns Silvercrest Foods, whose factory in Co Monaghan was one of the first whose products tested positive for horse DNA last month.