Ex-Tesco Marketer Lines Up Clubcard Arm Bid

The marketing executive who helped to forge Tesco’s transformation into the UK’s biggest retailer has been enlisted to spearhead a bid for the supermarket giant’s Clubcard loyalty arm.

Sky News has learnt that Tim Mason, who left Tesco in 2012 after leading its ultimately unsuccessful attempt to enter the US grocery market, is working with BC Partners, a private equity group, on an offer for Dunnhumby.

As Tesco’s marketing director and latterly its deputy chief executive, Mr Mason oversaw the customer insight work undertaken by Dunnhumby and its husband-and-wife founders, Edwina Dunn and Clive Humby.

The emergence of Mr Mason’s involvement in the auction comes the day before the retailer stages its first annual shareholder meeting since last year’s profits mis-statement crisis and the ousting of Philip Clarke as chief executive.

Sky News can reveal that Tesco will avoid a full-scale revolt on directors’ pay despite widespread predictions that the company would face an investor backlash.

An adviser to Tesco said on Thursday that the binding vote on pay policy – which is held every three years under reforms introduced by the former Business Secretary, Vince Cable – would be approximately 95% in favour, while the annual advisory vote on its remuneration report would win support from roughly 90% of shareholders.

Friday’s AGM will be the first to be chaired by John Allan, who replaced Sir Richard Broadbent as chairman in March, while Dave Lewis, Mr Clarke’s successor as chief executive, will outline his strategy for the business.

Despite the fact that opposition to its boardroom pay practices will be more muted than expected, Tesco directors are nevertheless expected to face tough questions about its relationships with suppliers, the string of regulatory inquiries underway into the company and its performance in the UK.

It is unlikely to offer much detail about the progress of the Dunnhumby auction or a sale process involving its operations in Korea.

Mr Mason’s involvement with BC Partners adds another prominent name to the list of bidders for a business which played an instrumental role in Tesco’s dominance of UK food retailing during the 1990s and the following decade.

Sky News revealed last week that Google was partnering with Permira, the buyout firm to make an offer, while other big names include John Browett, a former Tesco executive who has been talking to Apax Partners about buying Dunnhumby.

WPP Group, the marketing services company headed by Sir Martin Sorrell, has teamed up with General Atlantic Partners to mount a joint bid.

About a dozen bidders are involved in the auction, which was initially expected to fetch up to £2bn but which is now valued by bidders at less than half that sum following the restructuring of its relationship with Kroger, a US retailer.

Tesco, which is recovering from a £6.4bn annual loss for last year - one of the biggest in UK corporate history - has told prospective buyers that it is prepared to sell its entire interest in Dunnhumby.

Under a new owner, Dunnhumby would continue to work with Tesco, possibly under an initial five-year agreement, insiders indicated.

Tesco and BC Partners declined to comment on Thursday.