WPP Sole Bidder for dunnhumby?

According to reports in the press, WPP is the last remaining bidder for Tesco's data business dunnhumby.

The sale is part of Tesco's attempt to pay off some of its adjusted net debt of £8.5bn, as the supermarket giant plans £7bn of write-downs this year. Among those originally rumoured to be interesting in bidding were dunnhumby founders Edwina Dunn and Clive Humby; venture capital firm TPG; Nielsen; former Tesco executive and Dixons boss John Browett; Google and marcoms giant WPP.

The initial price tag of around £2bn is now said to have dropped by more than half, and earlier this month a number of bidders reportedly pulled out of the race following Tesco's announcement that whoever buys it will have to negotiate a new contract with the supermarket group within five years. More than half dunnhumby's current revenue comes from the deal with its parent.

Sky News says Tesco CEO Dave Lewis will be holding talks with colleagues and advisers later this week to decide whether to abandon the sale of dunnhumby. The report also suggested that WPP may negotiate a partnership arrangement with Tesco, instead of an outright acquisition.

Web site: www.dunnhumby.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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