Wireless

Unshackled Talk Talk enjoys early stock-market success

By Michael Carroll Mar 28, 2010 9:10pm

Early success in trading of Talk Talk shares have vindicated Carphone Warehouse’s decision to demerge, despite shares in its new retail division trading below analyst’s forecasts.

Talk Talk shares hit 120.5p (€1.34) in early trading this morning, some 5p higher than predicted by UBS, however shares in the Carphone Warehouse retail business fell short of the bank’s forecasts of 153p per share, trading at 144.5p, FT.com reports.

Talk Talk shares were divvied up on a one-for-one basis, meaning users received a share for each one held in Carphone Warehouse. However, the retail business issued one share for every two held in the old company.

Some 4.2 million customers source broadband connections from Talk Talk, making it the UK’s largest residential broadband provider , The Times states.

Andrew Harrison, chief executive of The Carphone Warehouse, told the newspaper the demerger was necessary to allow the retail business to sell broadband services from rival suppliers, clearing up confusion about whether his firm was a competitor or a customer of other telcos.