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.