Tesco considers banking arm float to ease financial woes

Laura Dew
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Tesco is considering selling a stake of its Tesco Bank division for up to £1bn in order to shore up its balance sheet.

According to the Telegraph, the troubled retailer is considering a partial float of its banking business in order to raise between £500m-£1bn. It follows three profit warnings this year from the supermarket and the £263m profit overstatement that is now being investigated by the Serious Fraud Office. While Tesco has been struggling to fight off the rise of discount rivals, the performance of Tesco Bank has also been poor: profits fell by nearly a quarter from £104m last year to £80m this year. Analysts have estimated it could cost up to £3bn to turn the supermarket around; other as...

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