The Telegraph reports mobile operator EE sets to pull out of its retail relationship with Carphone Warehouse, a move potentially threatening to the £3.4 billion CPW-Dixons "merger of equals."

As the newspaper puts it the operator is soon concluding a consumer retail strategy review-- one with a complete withdrawal from CPW is a potential result. The review also covers CPW rival Phones4U, and a similar conclusion could also be a result.

However EE refutes the story, telling PC Pro the Telegraph article is an "inaccurate extrapolation" from an earlier announcement, even if it also stresses the review has not reached any decision as yet.

“We announced a review of our distribution strategy a few months ago and this process is ongoing,” EE says. “Discussions [are] continuing with all relevant parties, including Carphone Warehouse, who [is] a long-standing and important partner."

Formed by the 2010 of Orange UK and T-Mobile UK, EE is the biggest mobile operator in the UK with around 30 million customers and over 30% market share. the relationship with CPW provides it with 780 outlets, a bigger high street presence than any other operator.

Go EE Threatens to Pull Out of Carphone Warehouse (The Telegraph)

Go EE Denies It's Pulling Handset from Carphone Warehouse (PC Pro)