Deutsche Bahn derails Vodafone subsidiary's IPO

German railway operator Deutsche Bahn has scuppered the flotation of Vodafone's fixed line operation, Mannesmann Arcor, by failing to turn up to a supervisory board meeting.

Deutsche Bahn holds an 18.8 per cent stake in the company, which Vodafone acquired as part of its takeover of the Mannesmann group. But representatives failed to turn up at the supervisory board meeting last Friday, forcing preparations for the IPO to be suspended. No new supervisory board meeting has been scheduled, and Deutsche Bahn is reported to be worried about the future value of its stake and about the control of its telecoms network, which is operated by Arcor. Earlier this autumn, the three owners of Mannesmann Arcor - Vodafone, with 74 per cent, Deutsche Bank, with eight per cent, and Deutsche Bahn - had agreed to float 25 per cent of the company early next year. None of the owners were prepared to comment.