Dixons, the UK electrical retailer, is considering launching an exchangeable bond of almost €1bn ($890m) into shares in Wanadoo, the French internet company which bought Freeserve from Dixons last year.

Wanadoo paid £1.6bn (€2.6bn) for Dixons' Freeserve internet service provider last December in an all-share deal which left Dixons holding 181.6 million Wanadoo shares.