AOL calls for Carphone Warehouse.

Investors Chronicle, October, 2006

Carphone Warehouse has bought AOL UK's internet access business. The GBP370m acquisition gives Carphone 18 per cent of the broadband market, making it the UK's third-largest provider. The two companies will also share advertising revenues from AOL's web portal. Broker Evolution Securities says that the deal is good value, and could increase earnings per share by up to 20 per cent next year.

Carphone's shares leapt 8 per cent to 360p, and could soon be in the FTSE 100 index. Slow broadband line unbundling and rising costs are a worry, but, even, so the shares rate good value.