Tesco is likely to be forced to give up on the sale of its loyalty card business Dunnhumby as talks with WPP look set to collapse.
The advertising agency has struggled to agree a price, according to the Sunday Times.
Tesco hired Goldman Sachs earlier this year to look into selling a portion or all of the business, as part of its efforts to raise cash. In May, bankers estimated a sale price of over £2bn. However, the company is now believed to be valued at £500m-£700m.
Dunnhumby analyses the data behind the retailer’s Clubcard and previous bidders are said to have included US data giant Nielsen.
Both Tesco and WPP declined to comment.