Tesco shares hit on Dunnhumby discount fears
SHARES in Tesco slid by 2.58 per cent yesterday over fears it may have to sell its data arm Dunnhumby for less than it had hoped after bidders discovered that the business was not as profitable as they had thought.
Dunnhumby was put up for sale this year for around £2bn. But some bidders are thought to be working on bids closer to £700m, according to the Financial Times.
A sale at that price would be a major blow to Tesco, which is seeking to bolster its balance sheet after one of its worst years on record.
It is also selling off its Korean business. Accendo’s Michael van Dulken said: “Should either or indeed both deals struggle, a cash call would surely be necessary to help put Tesco on a more solid footing.”