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Private equity firm TPG eyes Tesco clubcard unit - Sky News

Published 07/10/2014, 03:02
© Reuters The signage of Tesco Extra is silhouetted against the sun in southwest London
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(Reuters) - Private equity buyout firm TPG has approached troubled British grocer Tesco PLC (L:TSCO) to buy its data gathering and analysis subsidiary Dunnhumby, which is worth well over 2 billion sterling, the Sky News reported on Monday.

TPG's offer to Tesco came several months ago, when Philip Clarke was still chief executive, Sky News said, citing a source. (http://bit.ly/10Geyto)

Despite a rejection from Tesco on its initial approach, TPG still remains interested in the business, Sky News said, citing sources.

Tesco is examining its ownership of Dunnhumby as part of a broader review of its business being led by CEO Dave Lewis, the Sky News said.

Other private equity firms and big marketing holding companies are also expected to bid for Dunnhumby, if a formal auction is planned, the multimedia news agency said.

Dunnhumby, which was acquired by Tesco in 2004, could be worth up to 3 billion sterling, Sky News said, citing bankers.

Dunnhumby helps retailers create customer loyalty and personalisation programs by analysing huge amounts of data.

Tesco is being investigated by the Financial Conduct Authority and Financial Reporting Council for its 250 million sterling overstatement of its half-year profit accounting scandal.

According to analysts, Tesco might also sell its other businesses in Central Europe and Asia, Sky News said.

© Reuters. The signage of Tesco Extra is silhouetted against the sun in southwest London

TPG declined to comment on the report, while Tesco could not be immediately reached for comment outside regular working hours.

(Reporting by Rishika Sadam in Bangalore; Editing by Richard Chang)

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