The extension was given on Monday as speculation that rival Phones4u
<PHONE.UL> could enter the fray was dampened.
Dixons, Europe's second-biggest electricals retailer, and Carphone,
Europe's largest independent mobile-phone retailer, now have until
May 19 to confirm whether they intend to press ahead with a deal
that would create a group with about 2,900 stores across Europe and
which it is expected would find a place in Britain's FTSE 100 share
Dixons and Carphone announced they were in merger talks on February
24 and the Takeover Panel set an original deadline of 1700 GMT
"Since the announcement of February 24 was made when discussions
were at a very preliminary stage, both parties have agreed that they
require more time to evaluate a potential merger of the two
businesses," the two companies said on Monday.
A Sky News report said BC Partners <BCPRT.UL>, the private equity
firm that owns Phones4u, sounded out senior Dixons executives about
a possible tie-up in the days following the emergence of the
Carphone merger talks.
Phones4u already operates outlets in some Dixons stores through a
deal that runs to May 2015.
[to top of second column]
A source familiar with the situation told Reuters Dixons was not
currently in talks with Phones4u about any other business tie-up.
Shares in Dixons closed up 0.2 percent at 49.96 pence, valuing the
business at 1.8 billion pounds. Shares in Carphone closed down 4.8
percent at 323.6p, valuing that business at 1.87 billion pounds.
Both Dixons and BC Partners declined to comment.
($1=0.6065 British pounds)
(Additional reporting by Freya Berry; editing by Kate Holton, Greg Mahlich)
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