17 November 2008
Carphone Warehouse is reportedly considering a de-merger of its broadband operation TalkTalk to release value for shareholders.
The firm's chief executive Charles Dunstone is said to have spoken to bankers and asked them to examine the possible routes to a spin-off.
If the proposals go ahead, the TalkTalk broadband arm, which was launched in 2003, would be separated from the rest of the Carphone group.
However, Mr Dunstone has warned that a de-merger is unlikely to take place in the near future because of volatility in the stock markets.
According to the Daily Telegraph, he told the newspaper last month that "there is less and less reason for the telecoms and the retail business to be together".
TalkTalk has around 2.8 million customers and offers both broadband and mobile phone call packages. It is the UK's third largest broadband supplier.
Carphone Warehouse is an independent retailer of mobile phones and services. It has more than 2,400 stores in nine countries.
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