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Last Updated: Monday, 19 June 2006, 16:04 GMT 17:04 UK
DSG 'considering Link sale to O2'
The Link shop front
The Link has reported falling mobile phone sales
Britain's biggest electrical retailer, DSG International, is close to selling The Link - its chain of mobile phone stores, a report has suggested.

The Guardian newspaper said DSG was in talks to sell the High Street chain to Spanish-owned mobile phone operator O2.

The Link, which has been losing ground to rivals such as Carphone Warehouse, reported a 21% drop in like-for-like sales last year.

The company employs 2,300 staff in 300 stores across the UK.

Own-brand stores

An announcement on any deal could be made on Wednesday when DSG, which owns the Currys, Dixons and PC World chains of electrical stores, reports its full-year results.

Buying The Link would be the first major UK deal involving O2 since the mobile phone operator was taken over by Spanish telecoms firm Telefonica last year.

Mobile phone companies are keen to promote their own-brand stores as a way of attracting new customers.

Shares in DSG International closed up 1.9% at 193p on the London Stock Exchange.

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