Bloomberg reports that Tesco, which is looking to sell of its Dunnhumby data analysis unit, may have to lower the price if it is going to find a buyer.
According to the story, "the potential buyers are concerned the 2 billion pounds ($3 billion) Tesco is asking for the operation is too much because once Dunnhumby stops being part of Tesco, Britain’s biggest retailer, it risks becoming less attractive to companies such as Coca-Cola Co. and Procter & Gamble Co., the people said. Dunnhumby provides data on the buying habits of 700 million shoppers worldwide."
Tesco's new CEO, Dave Lewis, is engaged in a cost-cutting and asset sale strategy that he hopes will revive the company's financial fortunes. However, he also has said that he will not run a "fire sale" of assets that would result in them being sold at below-value prices.
According to the story, "the potential buyers are concerned the 2 billion pounds ($3 billion) Tesco is asking for the operation is too much because once Dunnhumby stops being part of Tesco, Britain’s biggest retailer, it risks becoming less attractive to companies such as Coca-Cola Co. and Procter & Gamble Co., the people said. Dunnhumby provides data on the buying habits of 700 million shoppers worldwide."
Tesco's new CEO, Dave Lewis, is engaged in a cost-cutting and asset sale strategy that he hopes will revive the company's financial fortunes. However, he also has said that he will not run a "fire sale" of assets that would result in them being sold at below-value prices.
- KC's View:
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Hard to believe that Dunnhumby becomes less attractive once it can be expanded to other retailers and suppliers ... but maybe I have a fundamental misunderstanding of how this market works.
