WARRINGTON’S TalkTalk broadband operation could be changing hands after owner Carphone Warehouse confirmed it was considering a demerger.

TalkTalk has proved a hit since its launch in 2003, and now has 2.8m customers, making it the UK’s third-biggest broadband provider behind BT and Virgin Media.

When it started it employed just a couple of hundred people at its Warrington base, and that has now grown to more than 1,200.

The potential sale is likely to attract interest from major players such as Vodafone, according to analysts.

News of the potential split came as the group announced interim net profits of £39m for the 26 weeks to September 27, compared with £44m in the same period last year.

Carphone’s founder, Charles Dunstone, said the group had reached a “watershed” with two distinct businesses, and announced plans to review the corporate structure.

He said: “We recognise the structure of the group may no longer be appropriate for the optimal development of the two businesses.

“The board has therefore initiated a formal review of the group’s corporate structure and capital requirements, which may lead to a separation of the two businesses.”

The move comes just six months after Carphone sold a 50% stake in its retail business to US electronics firm Best Buy for £1.1bn as it seeks to enter the European market.

He said he would remain closely linked to both TalkTalk and the stores business, now called Best Buy Europe.

Mr Dunstone, who still owns almost a third of the £1.3bn company, said an update on the review would be announced in the spring.

Conditions in the broadband market have toughened in recent months as the property slump hits demand for connections.

tonymcdonough