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DSG could offload The Link - report

Sale rumours surface again

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DSG International could be about to offload its troubled mobile phone business to cellco O2.

The Link is a joint venture between DSG (60 per cent) and O2 (40 per cent) and has been dogged by speculation about its future for months.

The Guardian reports that an announcement could be made as early as this week when DSG - which is behind Dixons, Currys and PC World among others - publishes its latest set of results.

Speculation about the future of The Link - which has struggled to cope with the likes of Carphone Warehouse - is nothing new. Reports surfaced last April that DSG was looking to flog The Link after what was described as a "torrid Christmas trading period".

Last September, it was reported that DSG was looking to sell its majority stake in the business but the retailer hit back saying that it backed The Link. In fact, DSG went a step further saying that it has made no secret of the fact that it would be prepared to buy out O2's 40 per cent stake, something rejected by Telefonica-owned O2.

In a trading update issued last month DSG admitted that the "overall performance of The Link continues to be disappointing" with like for like sales over the last 12 months down 25 per cent. DSG is due to publish it latest set of results on Wednesday. ®

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