12th Aug 2015 05:37
LONDON (Alliance News) - The size of the bids set to be tabled for Tesco PLC's Dunnhumby data analysis business are set to be slashed after those interested in acquiring the unit found it was less profitable than initial forecasts, the Financial Times reports.
Dunnhumby was put up for sale by the retailer earlier this year with a price tag of up to GBP2 billion, but the FT, citing two people familiar with the auction, said bidders are now understood to be considering offers of around GBP700 million, having found the business was less profitable than thought.
Tesco is seeking to sell Dunnhumby as part of an asset disposal programme designed to repair its debt-laden balance sheet. Should it be unable to secure sufficient funds from asset sales, analysts expect the group may have to tap the market for funding via a multi-billion pound rights issue of shares.
https://next.ft.com/14a19098-4045-11e5-b98b-87c7270955cf
By Sam Unsted; [email protected]; @SamUAtAlliance
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