Carphone Warehouse rumoured to break away TalkTalk business

Rumours were circulating this weekend that Carphone Warehouse is to split away from its TalkTalk business over the next eighteen months. However, if this goes ahead Charles Dunstone, the founder of Carphone Warehouse is expected to remain on the board for both parts.

It has been suggested that Dunstone will announce that he is in agreement for dividing the group - created in 1989 - in order to increase valuation of the two companies.

Mr Dunstone, who owns 32.6 per cent of the company, is keen to stay on the board for the group, although it has been suggested that he will designate a high-powered retail role to his current finance director, Roger Taylor.

As part of the joint venture plan, the business has been reported to have recently acquired several costly out of town stores, including a 3,000 sq ft shop in West London's new Westfield centre, despite current economic problems.

Pros for a break-up would include the potential for Carphone Warehouse to provide "expert impartial advice" to customers rather than push their own TalkTalk broadband brand.

Carphone Warehouse is keeping quiet on this weekend's reports but clarification will come tomorrow during the company's Interim Results webcast.