High street electrical retailer, Dixons, has raised £215 million (€310 million) after flogging 48.4 million shares in French ISP Wanadoo.

The cash will be used to reduce debt at Dixons, the company said in a statement.

Dixons earned its stake in Wanadoo following the sale of UK ISP, Freeserve, to the French company in 2000 for £1.65 billion. Dixons created Freeserve - the first major UK ISP not to charge a subscription - in September 1998 before it quickly grew into the UK's leading ISP.

Shares in Dixons were up 2.5p (1.9 per cent) at 134p in early trading. ®