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| Version 3 | Version 4 |
|---|---|
| Shock exit of Carphone co-founder | Shock exit of Carphone co-founder |
| (10 minutes later) | |
| David Ross, co-founder of Carphone Warehouse and holder of 19.4% of its shares, has resigned as a director in a scandal over the use of his shares. | David Ross, co-founder of Carphone Warehouse and holder of 19.4% of its shares, has resigned as a director in a scandal over the use of his shares. |
| Mr Ross used 136 million of his 177 million shares as security against personal loans without telling anyone in the company. | Mr Ross used 136 million of his 177 million shares as security against personal loans without telling anyone in the company. |
| Mr Ross is also on the board of the organising committee for London 2012. | Mr Ross is also on the board of the organising committee for London 2012. |
| He stressed that he had no intention of selling the shares and none of the loans was in default. | He stressed that he had no intention of selling the shares and none of the loans was in default. |
| At Friday's closing price, Mr Ross's stake in Carphone was worth just under £165m. | At Friday's closing price, Mr Ross's stake in Carphone was worth just under £165m. |
| He was London Mayor Boris Johnson's appointment to the board of London 2012, charged with making sure that the games did not go over budget. | He was London Mayor Boris Johnson's appointment to the board of London 2012, charged with making sure that the games did not go over budget. |
| Investors will see this morning's announcement as raising great uncertainties about the future ownership of a fifth of the company Robert Peston, BBC business editor Read Robert Peston's blogCheck Carphone Warehouse sharesCheck Big Yellow Group shares | Investors will see this morning's announcement as raising great uncertainties about the future ownership of a fifth of the company Robert Peston, BBC business editor Read Robert Peston's blogCheck Carphone Warehouse sharesCheck Big Yellow Group shares |
| Mr Ross also used his £24m shareholding in self-storage company Big Yellow Group as security for personal loans without first notifying the company. | Mr Ross also used his £24m shareholding in self-storage company Big Yellow Group as security for personal loans without first notifying the company. |
| Big Yellow Group said that Mr Ross, who is a director of the company, had only just informed the firm. | Big Yellow Group said that Mr Ross, who is a director of the company, had only just informed the firm. |
| It added that there was no indication that he would resign from his post. | It added that there was no indication that he would resign from his post. |
| Mr Ross is also a director of National Express and ITIS, a traffic information provider. | Mr Ross is also a director of National Express and ITIS, a traffic information provider. |
| He is a member of the family that started the Grimsby-based Ross frozen fish brand, which is now owned by Young's frozen foods. | |
| 'Oversight' | 'Oversight' |
| Carphone Warehouse chief executive Charles Dunstone said the resignation was a "great personal sadness". The two were at school together. | Carphone Warehouse chief executive Charles Dunstone said the resignation was a "great personal sadness". The two were at school together. |
| He said the incident was "probably an oversight or a misunderstanding of what needed to be done". | He said the incident was "probably an oversight or a misunderstanding of what needed to be done". |
| Stock exchange rules say that if a director uses his shares in this way, the company has to make an official announcement. | Stock exchange rules say that if a director uses his shares in this way, the company has to make an official announcement. |
| The company made such announcements in 2002 and 2003, when Mr Ross used some of his shares as security for personal loans. | The company made such announcements in 2002 and 2003, when Mr Ross used some of his shares as security for personal loans. |
| Mr Ross and Mr Dunstone are by far the biggest shareholders in Carphone Warehouse, with 52% between them. | Mr Ross and Mr Dunstone are by far the biggest shareholders in Carphone Warehouse, with 52% between them. |
| No other shareholder or fund has more than 4%. | No other shareholder or fund has more than 4%. |
| BBC business editor Robert Peston said that the announcement would raise uncertainties about the future ownership of one fifth of the company. | BBC business editor Robert Peston said that the announcement would raise uncertainties about the future ownership of one fifth of the company. |
| Carphone Warehouse and Big Yellow Group shares both fell more than 4% in early trading. | Carphone Warehouse and Big Yellow Group shares both fell more than 4% in early trading. |