INTERVIEW: Vodafone Germany Buyout of Arcor Closer
HANOVER, Germany -(Dow Jones)- Vodafone Group's German subsidiary could soon take over fixed line and broadband provider Arcor, Vodafone Germany Chief Executive Friedrich Joussen told Dow Jones Newswires in an interview Monday.
Vodafone Germany has a 74% stake in Arcor, while minority shareholder Deutsche Bahn hold and Deutsche Bank hold 18% and 8%, respectively.
"All the parties have come closer in their asking price, so it's not ruled out that their will be a settlement in a short period of time," Joussen said. "However, it's also possible that it takes six or twelve months before the deal is made, you never know."
Joussen added that the likelihood of a Vodafone buyout of the minority shareholders is now much higher than half a year ago. Arcor and Vodafone already closely cooperate on infrastructure.
Recent German press reports said Deutsche Bahn is willing to lower the price for its stake to EUR500 million, from the EUR650 it wanted previously.
Cooperation between the companies so far has led to synergies of EUR50 million a year, for example through common purchase, Joussen said.
In fiscal 2007, Arcor had sales of EUR2.13 billion. It posted a 9.5% rise in sales in the first nine months of fiscal 2008, ending Dec.31.
Arcor provides broadband and fixed-line services in Germany. It had 2.48 million broadband customers at the end of 2007, according to Arcor's most recent figures.
-By Archibald Preuschat, Dow Jones Newswires; +49 (0) 69 29725505; archibald.preuschat@dowjones.com
Corrected March 3, 2008 13:42 ET (18:42 GMT)
(END) Dow Jones Newswires
Posted to the site on 3rd March 2008