Carphone shares fall as Vodafone scraps deal
Celebrations over Carphone Warehouse’s deal to buy AOL UK were cut short today when it emerged the retailer had lost a key supply deal with Vodafone.
Shares tumbled 13%, putting back all the gains achieved yesterday in the wake of its deal to bolster the TalkTalk broadband side of its operation.
The developments at the FTSE 250 Index stock overshadowed another bright session for the London market, as the Footsie stood 10.6 points higher at 6084.1 by mid-morning.
Stronger copper and gold prices ensured miners were again setting the pace at the top of the risers board.
Rio Tinto led the sector with a rise of 51p to 2626p, while Anglo American rose 47p to 2354p and Xstrata lifted 39p to 2192p.
Elsewhere, brewing group SABMiller slid 11p to 1024p, even though it said its first-half financial performance was in line with expectations.
In the second flight, WH Smith gained 3p to 378p after posting a 31% hike in profits in the face of falling sales on the high street.
The retailer, which recently split from its news distribution arm Smiths News, said pre-tax profits rose from £39m (€57.7m) to £51m (€75.5m) in the 12 months to the end of August.
Shares in Smiths News were up 3p at 128p as the former sister business of WH Smith also impressed investors with a modest rise in profits and a largely positive outlook statement.
Computer services firm LogicaCMG added 4p to 173.25p after Goldman Sachs upgraded it to buy from neutral.
The biggest fall outside the top flight came from Carphone Warehouse, as investors digested news that Vodafone had handed the contract to sell contract mobile phones to rival Phones4U. Carphone shares were 43p lower at 317.25p.
Vodafone shares were little moved, up half a penny at 130.75p.
