Orange may sever connection with retailer
Following yesterday’s announcement by Vodafone that it is to end its relationship with Carphone Warehouse - news of which sent shares in the retailer into a tailspin - a report in the Times (today) that Orange may sever its connection with Carphone brought a second day of misery for chief executive Charles Dunstone.
Carphone’s value was slashed by close to£500 million yesterday as the Vodafone news was absorbed by the markets and the downward plunge continued this morning with shares falling by 7 per cent as the market opened in London.
However, the share price appears to be stabilising and City sources were saying that the Orange speculation may yet prove to be inaccurate.
Evolution analyst Nick Bubb said: ‘The nightmare scenario is that the whole Carphone business model unravels. I’d still back Charles Dunstone to get it right. His business judgement has been consistently brilliant.’
Yesterday’s announcement by Vodafone that it is to deal with Phones 4U rather than Carphone brings to an end a relationship that has lasted for 17 years.