Owner BC Partners is reportedly looking to make a rival bid for the electronics retailer, as the deadline for negotiations between Dixons and Carphone Warehouse is postponed
Phones 4U is reportedly talks with Dixons over a possible merger.
Such a move would see it go head to head with rival mobile retailer Carphone Warehouse, which has bid £4 billion for Dixons.
The news coincides with a decision by the UK takeover panel, which regulates deals, to extend the deadline for negotiations to May 19. Talks were due to conclude at 5pm today (March 24).
“Since the announcement of February 24 was made when discussions were at a very preliminary stage, both parties have agreed that they require more time to evaluate a potential merger of the two businesses,” separate statements from the companies said.
Reports that Phones 4U’s owner, private equity group BC Partners, are looking to buy Dixons will come as no surprise to analysts.
Those Mobile News spoke to following the Carphone Warehouse/Dixons announcement said they expected Phones 4U to bid as it has concession stores within the chain.
“I think a better fit, before this was put together, might have been Dixons and Phones 4u, because Phones 4u provided the contract sales in Dixons’ stores,” chief of research at analysts CCS Insight Ben Wood told Mobile News.
Phones 4U declined to comment.
BC Partners were not available for comment.