Carphone Warehouse And Best May Make A Bid To Buy Dixons Owner

According to reports, the rise in the rating of DSG's stock by Morgan Stanley analysts hints at possible takeover of DSG by the new joint venture of Carphone and Best Buy.

Right in the beginning of the month US-retailer Best Buy gained a share of Carphone's retail business. Best Buy has also proclaimed its plans to open various large retail stores in the country.

This takeover bid is supposed to generate a new revenue stream for the newly formed joint venture that may strengthen the bond.

In addition to that, even Morgan Stanley analysts have suggested that at this moment an acquisition is the primary requisite for the new venture to flourish.

As places for opening new stores are hard to come by, DSG with its chain of over 700 stores in Britain makes for an attractive take over candidate.

DSG has been a major victim of slowdown in consumer spending in recent past and is trying hard to stem its slipping sales. The news of take over has lead to sharp jump in its share price over the last few days.