The chief exec of Carphone Warehouse, Charles Dunstone has announced plans to split Carphone Warehouse and TalkTalk into two separate companies and become chairman of both.

As two separate companies, it is thought that both would be members of the FTSE 250 index states a report in the timesonline.

Carphone Warehouse shares held steady this morning as 127.25 and value the groups at £1.16 billion. However it is not clear yet if shareholders will agree to Dunstone taking both chairmanships.

Carphone Warehouse currently has a dept of £180 million and thus will wait until conditions within the credit market improve before making such a split.