9th Jun 2014 09:18
LONDON (Alliance News) - EE is poised to pull out of its relationship with Carphone Warehouse Group PLC in a move that threatens the retailer's GBP3.6 billion merger with Dixons Retail PLC, The Telegraph reported at the weekend.
EE, a joint venture between Orange SA and Deutsche Telekom AG, is reviewing its consumer retail strategy, with a conclusion due "within weeks," and a complete withdrawal from Carphone Warehouse the potential results, the newspaper said.
Deputy Chief Executive of Orange Gervais Pellissier urged EE to "get rid" of third party retailers and deal with customers directly last week, the report said.
The review will also look at EE's relationship with Phones4U LLC, and the report said EE would end its relationship with one or the other, or both.
"EE is the UK?s largest mobile provider, and the move would make Carphone Warehouse a lot less relevant," said CMC Markets market analyst Jasper Lawler.
"We announced a review of our distribution strategy a few months ago, and this process is ongoing, with discussions continuing with all relevant parties, including Carphone Warehouse, a long-standing and important partner," a spokesperson for EE told Alliance News.
http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/telecoms/10883787/EE-threatens-to-pull-out-of-Carphone-Warehouse-casting-shadow-over-Dixons-merger.html
Dixons Retail leads the fallers in the FTSE 250 Monday, down 1.7% at 48.75 pence. Carphone Warehouse is the second worst performer in the index, also down 1.7% at 320.06 pence.
By Jon Darby; [email protected]; @jondarby100
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