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Governance fears in plan to demerge Carphone Warehouse
Robert Lea18 Nov 2008
Carphone Warehouse boss Charles Dunstone today admitted he could be walking into a corporate governance row as he announced plans to demerge his mobile phone shops from his TalkTalk/AOL fixed-line and broadband business.
Dunstone, who founded the group almost 20 years ago, said it will present proposals to shareholders in the spring.
The intention is for Carphone to become two separately quoted companies. Dunstone said he wants to be involved with both, potentially as chief executive of one and chairman of the other. But he conceded it could present corporate governance problems as the City Code on best practice says big companies should have independent chairmen.
"That is a potential problem and just one of a number of things that will need to be worked out," he said.
Carphone today reported a 51% jump in underlying pre-tax profits to £112 million in the half-year to the end of September.
