WPP ‘Cautious’ Over Value Of Dunnhumby
WPP chief executive Martin Sorrell (pictured) has said that changes to Dunnhumby’s US business has made a ‘significant difference’ to the loyalty firm’s 'profitability and attractiveness'.
Sorrell was speaking at a meeting hosted by Barclays last week.
His comments refer to the fact that Tesco-owned Dunnhumby recently unwound a 50/50 joint venture with Kroger in the US, in order to make the business more saleable.
According to Barclays, Sorrell stated that if WPP does make an offer for Dunnhumby, "it will be smaller and still be with private equity General Atlantic as a partner".
Barclays added, "WPP has declared itself a potential bidder for Dunnhumby, so Sorrell is clearly not a disinterested observer. However, given that other parties have declared themselves interested in Dunnhumby, WPP has little to gain by trying to talk the price down."
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