Tesco PLC’s Dunnhumby data analysis has had to drastically scale back ambitions for the sale with a price of up to £2 billion ($3.11 billion). as bidders were discouraged by lower than expected earnings and difficulties financing a deal.
The FT citing two people familiar with the auction told FT the bidders were now contemplating offers of about £700 million ($1.091 billion) or less, after discovering that the business was less profitable than thought.
After 100-year history and loong time Britain’s most powerful retailer, Tesco was entered into its biggest crisis when the discovery of a £250 million ($389.6 million) profit shortage.
Tesco is seeking to sell Dunnhumby as part of an asset riddance programme designed to repair its debt-laden balance sheet.
Analysts expect the group may have to tap the market for funding via a multi-billion pound rights issue of shares.
British grocery chain Tesco on Wednesday
reported its worst full-year results ever, with
losses of £6.4 billion for 2014-15, although
there are indications of a possible turnaround.
While the company struggles More…
After stating pie in the sky profits, Tesco has
decided that the only way it can get its feet on
the ground and mollify irate shareholders is
by getting rid of its corporate jets, as reported
by the Financial Times. The More…
Prospects look brighter for Tesco, the British
supermarket chain, after Morgan Stanley
upgraded the stock from equalweight to
overweight, according to the Financial Times.
Edouard Aubin, a Morgan Stanley analyst, More…
Tesco CEO Dave Lewis has unveiled his plan
to turn around the struggling British grocer,
with drastic reductions in its head office staff,
the company dividend, its video service and
pension scheme. Lewis More…
– Tesco, a leading British supermarket chain,
with stores in North America and Asia, seems
to be suffering from the Plagues of Egypt.
The iconic brand, founded way back in 1919
by Jack Cohen, is a British institution, More…