Deutsche Bahn approves sale of Arcor stake to Vodafone

19 May 2008

The German national railway company Deutsche Bahn has agreed to sell its 18.2% stake in fixed line telco Arcor to Vodafone for around EUR330 million (USD510.8 million), the Financial Times Deutschland newspaper has reported, without citing sources. The deal will leave the UK group in control of 91.8% of Arcor. The remaining 8.2% is held by Deutsche Bank, which has reportedly said it will sell to Vodafone for EUR145 million. According to TeleGeography’s GlobalComms database, Arcor operates Germany’s second largest fixed line voice and data network, offering a full range of services in more than 550 cities, and has been majority-owned by Vodafone since 2000. Press reports have been circulating since April 2006 that Vodafone wanted to buy out the two minority shareholders, but it was not until March this year that it confirmed it was in talks with Deutsche Bahn and Deutsche Bank about buying their Arcor stakes.

Germany, Vodafone Germany, Vodafone Group