Vodafone close to Arcor deal, says source

11 Mar 2008

Dow Jones Newswires reports that UK-based mobile group Vodafone could acquire the remaining stake it does not own in German broadband and fixed line telephony provider Arcor for about EUR500 million (USD768.5 million) as soon as late April, according to a person familiar with the situation. Vodafone already has a 74% stake in Arcor, and is close to agreeing a deal with minority shareholders Deutsche Bahn (18%) and Deutsche Bank (8%) for the remainder. ‘Vodafone is close to agreeing a price of around EUR500 million with the companies and it could close by as early as the end of April,’ said the source. A Deutsche Bahn spokesman said, ‘We are in negotiations,’ but did not elaborate. Deutsche Bank declined to comment. According to recent press reports, Deutsche Bahn had been holding out for EUR650 million, but is now believed to be willing to lower its price to below EUR500 million.

Germany, Vodafone Germany, Vodafone Group