Tesco 'close to ditching Dunnhumby sale plans'

Supermarket chain Tesco is reportedly on the verge of scrapping plans to sell Dunnhumby after failing to secure a buyer for the clubcard points business.

Senior City sources told the Sunday Times that WPP, the most recent serious contender for the business, has been having trouble agreeing the terms of a deal amid concerns about Tesco's contract with Dunnhumby, a steep decline in its value and its success potential in the US.

However, the situation was looking brighter for the sale of some of its European operations, sources told the publication.

Talks are said to have been held between the retailer and private equity houses to discuss its Czech Republic, Slovakian and Polish businesses.

They are believed to be of interest to buyers with knowledge of the area, given that Tesco has previously warned about pressures on its central European operations as a result of taxes imposed by Hungary.