Separation for Carphone and Talk Talk by 2010

Carphone Warehouse has recently announced that its separation from its Internet Service Provider arm Talk Talk should be completed by July of next year.

It has recently been announced by Carphone Warehouse that its separation from its Talk Talk fixed line and broadband business should be completed by July of next year. Once the separation has been completed Carphone Warehouse and Talk Talk will become listed as two separate businesses.

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The recent decision of Carphone Warehouse to buy troubled Italian broadband provider Tiscali means that Talk Talk will become the second biggest broadband provider in the UK. The company is said to have enjoyed success even through the current tough economic climate. However, the annual results released by Carphone Warehouse have shown that there was a drop in revenues compared to last year.

Charles Dunstone, Carphone’s chief executive, stated: “Because of the degree of change we have undertaken, it is not easy to compare last year’s financial results with this year’s.” However, he said that the separation of the two brands would make it easier for shareholders to more clearly determine the value of the businesses.

He went on to state: “It’s been increasingly obvious that the group is now two businesses. Both have reached the point where there are no material synergies between them… they need to operate independently.” In the meantime officials from the company have said that the acquisition of Tiscali could boost the value of shares by ten percent.

Whilst the date that has been set for completion of the Carphone Warehouse and Talk Talk split has currently been set for July of 2010, officials from the company have said that ideally they would like it all to be completed by around March of next year.

Source – http://news.bbc.co.uk