Tempus analysis: Bad call

David Ross, the co-founder of Carphone Warehouse who resigned today after failing to declare using his stock to secure personal loans, also used his shareholdings in National Express, Big Yellow Group and Cosalt as collateral to borrow money.

Mr Ross today resigned as deputy chairman of Carphone Warehouse, which he co-founded with Charles Dunstone, after failing to declare he used a 15 per cent stake in the mobile phone business to secure personal loans.

It has now emerged that Mr Ross used more than three million shares in National Express, where he is chairman, on March 23, 2006 "to support personal borrowings from several banks".

National Express declined to comment further on Mr Ross. Shares in National Express fell 3.4 per cent to 462.25p today.

Mr Ross still holds 3 million shares in the transport group worth a total £13.9 million at today's price.

Mr Ross also used 11 million shares in Big Yellow Group, the storage company in which he is the biggest single shareholder and a non-executive director, against his personal loans. Big Yellow's shares lost 5.3 per cent, falling to 35.75p today.

His 9.9 per cent holding in Big Yellow is worth £23.1 million. The company refused to comment today.

Cosalt, the safety services company which was previously run by Mr Ross's father and his grandfather, revealed that Mr Ross, who is chairman, had pledged 3,989,296 of its shares against personal borrowings on various dates on or after March 23, 2006.

His 15 per cent Cosalt holding is today worth £5.52 million.

A company spokesman for Cosalt told Times Online that discussions with other members of the board on Mr Ross's future at the company were ongoing. Mr Ross's grandfather John Carl Ross was chairman when the company floated in 1971 and his father John was chief executive until he resigned in November 1986.

The Financial Services Authority (FSA), the City watchdog, refused to comment on whether it will launch a probe into Mr Ross's activities.

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