Argos owner rejects bid for Experian - report

Retail giant GUS was today reported to have spurned a £7bn (€10bn) approach for its Experian credit checking agency.

The owner of Argos and Homebase was asked by a consortium of US-based private equity firms including Thomas H Lee and Bain Capital if it was willing to sell the business, the Daily Telegraph said.

But it is understood that the proposal was rejected because GUS felt it undervalued Experian, which has enjoyed stellar rates of growth at a time when sales at Argos and Homebase have been affected by the UK consumer slowdown.

GUS has committed itself to demerging Experian from its retail assets but analysts believe the timing will be decided by a pick-up in high street spending in the UK.

Today’s report said that chairman Victor Blank favours a flotation - possibly later this year – over a sale to a private equity consortium.

It is believed that other private equity houses are eyeing Experian, including US-based Kohlberg Kravis Roberts and Hellman & Friedman, although it is unclear whether they have approached GUS or are working with the consortium.

Experian, which employs 12,000 people and generates the bulk of its revenues in the United States, used to be owned by Thomas H Lee and Bain Capital before they sold the business in 1996.

Since coming under the wing of GUS, Experian has been expanded through deals such as the £273m (€395m) acquisition of website PriceGrabber.com, which enables shoppers to compare retailers’ prices.