Tesco’s Dunnhumby could fetch over £2bn as new suitors Nielsen and WPP mull bid
US data giant Nielsen is reportedly eyeing a bid for Tesco’s Dunnhumby amid a flurry of interest that could push the price tag for the company above the mooted £2bn mark.
Tesco boss Dave Lewis hired Goldman Sachs earlier this year to explore a sale or partial sale of the business – which analyses the data behind Tesco’s Clubcard – in a bid to raise cash after racking up a record £6.38bn loss last year.
Nielsen is said to have expressed an interest in Dunnhumby, according to The Sunday Times, joining other potential bidders including WPP, which confirmed interest in the business last month.
“Dunnhumby is clearly well bid, which should take pricing to the top of the range,” Shore Capital’s Clive Black told City PM. However Black warned that Tesco still had a long way to go to de-risk the business and reduce debt.
“We are still uncertain as to whether or not Tesco needs a capital event; we sense so,” he said.