LONDON May 15 Britain's Carphone Warehouse
and Dixons Retail have agreed a 3.8 billion
pounds ($6.38 billion) all-share merger, creating a powerful
pan-European mobile phone and electricals group with about 2,900
Carphone, Europe's biggest independent mobile phone
retailer, and Dixons, Europe's No. 2 electricals retailer, said
on Thursday the deal would be implemented by way of a scheme of
arrangement of Dixons.
They said the merger would result in each of Dixons' and
Carphone's shareholders holding 50 percent of a group to be
called Dixons Carphone Plc.
Under the terms of the merger, Dixons shareholders will
receive 0.155 of a new Dixons Carphone share in exchange for
each Dixons share.
Based on Wednesday's closing prices Carphone had a market
capitalisation of 1.90 billion pounds and Dixons 1.87 billion
($1 = 0.5960 British Pounds)
(Reporting by James Davey; editing by Kate Holton)