Dunstone poised to announce Talk Talk spin off

Carphone Warehouse founder and chief executive Charles Dunstone is expected to outline plans to spin off its broadband business tomorrow (November 17). It is understood he will announce the move as the chain reveals a fall in profit in its interim results.

Dunstone, who owns 32.6% of the group, is expected to remain on the board of both businesses if split goes ahead. The move would not be expected to go ahead until the economic situation improves, meaning it may not happen until 2010.

There has been increasing pressure on Dunstone to break up the group since it sold a 50% stake to American consumer electronics group Best Buy in May. It is thought that a demerger of Talk Talk will help to boost valuations of the mobile phone retailer.

Analysts are predicting the group will report a 27% fall in pre-tax profits to £45.2m when it releases its interim results tomorrow.

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