December 8, 2008

Loans upend exec at Carphone Warehouse

Britain's Carphone Warehouse said its deputy chairman David Ross resigned after failing to reveal his stakes in the company helped him secure personal loans.

Ross, co-founder of the telecommunication retailer, owns 15 percent of the company, The Times of London reported Monday.

Share values in the company fell 5.4 percent Monday on reports that Ross, who was appointed the head of the oversight committee for the 2012 Olympic games, would suddenly sell his shares. But Ross, has no current intention to sell any of his shares in the company, a Carphone Warehouse statement said.

Ross is also a director at Big Yellow Group, and chairman of Cosalt and National Express.

Big Yellow Group declined to comment on Ross's future with the company. National Express also would not say if Ross would continue in his positions there, The Times reported.

The loans that triggered Ross's resignation were taken out in 2006. When loans are secured using a company's shares, the company is obliged to issue a statement, The Times said.

Charles Dunstone, who founded Carphone Warehouse with Ross, said the failure to disclose the loan was probably an oversight or a misunderstanding.