DSG seeks sale of The Link retail arm to Telefonica's O2

0 Comments | AFP, June, 2006

LONDON (AFP) — Pan-European electrical retailer DSG International has said that it is in talks to sell a majority stake in mobile phone chain The Link to Telefonica's British subsidiary O2 for 30 million pounds (43.9 million euros, 55.4 million dollars).

DSG added that it expected to create 3,000 jobs across Europe -- including 1,000 in Britain -- with the opening of between 50-60 new stores over the next 12 months.

The news came in DSG's annual results statement which also revealed a 9.0-percent drop in pre-tax profits, despite a modest boost from sales of flat screen televisions ahead of the World Cup in Germany.

O2, which was taken over by Spanish telecommunications giant Telefonica earlier this year, already owns a 40-percent stake in The Link but seeks...