TalkTalk arrives on market with £1bn value

TalkTalk Telecom – the UK's second biggest broadband firm behind BT with more than four million customers – is valued at around 1.1bn following the long-awaited demerger.

The split leaves Carphone Warehouse with its 50 per cent stake in Best Buy Europe – its joint venture with the United States consumer electronics giant – and a 47.5 per cent stake in Virgin Mobile France.

Carphone Warehouse has a current market value of around 620m following the shake-up.

Mr Dunstone, who set up the business in 1989, retains a 33 per cent stake in both TalkTalk and Carphone Warehouse valued at around 550m.

The former chief executive is now chairman of both companies, with Carphone now led by former finance director Roger Taylor and TalkTalk to be run by Dido Harding, who is joining from Sainsbury's.

TalkTalk, which has around 5,000 staff, will give its first trading update as a separate entity on May 11.

Carphone Warehouse sold half of its retail business to US partner Best Buy for 1.1bn in 2008.

The first store in the partnership's assault on the UK market will open in May in Thurrock, Essex – offering initiatives such as a trade-in service where customers can receive discounts when they bring in their old televisions, laptops and mobile phones.