2nd Jun 2015 05:45
LONDON (Alliance News) - The prospective bidders for Tesco PLC's Dunnhumby customer data business are set to cut the value of their offers following the restructuring of one of the unit's biggest contracts, Sky News reports citing sources.
Private equity suitors for the business, which runs the retailers' Clubcard operation, started holding talks with Tesco last week and are understood to have since cut their projected valuations of the company from GBP2 billion to around half that, Sky News said.
The cut is thought to have been made after bidders were informed that a renegotiation of Dunnhumby's contracts with US retailer Kroger meant the profitability of the business being sold is now substantially lower than initially estimated, it added.
http://news.sky.com/story/1494416/bidders-cut-valuation-of-1bn-tesco-clubcard
By Sam Unsted; [email protected]; @SamUAtAlliance
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