Analysts have dismissed fears over the future of Carphone Warehouse’s joint venture with Best Buy, after the retailer’s share price dropped to new lows for the year.
As Mobile went to press the retailer’s share price had dropped to 182p, down nearly 49% since the start of the year.
Investors are said to have been unimpressed by the £1.1bn deal with US giant Best Buy, which will see the companies develop new supermarket-size electrical stores.
Almost one in four Carphone shareholders abstained from backing the deal in June.
Some industry experts have suggested that Best Buy may try to pull out of the deal and turn its attention to buying electrical goods rival DSG.
However, Sam Hart, an analyst at Charles Stanley, said: ‘There is no obvious reason why Best Buy would want to pull out at this stage. They have identified Europe as a place to expand.
‘Turning their attention to DSG isn’t as cheap an option as it first might appear. It has massive operating lease liabilities on its books.’