Arcor, the fixed-line telephone subsidiary of Vodafone, has finally got the go-ahead from Deutsche Bahn (DB), the German railway company, for the initial public offering it has been hoping for all year.

DB, which has an 18% stake in Arcor, had resisted the idea of an IPO because it was concerned about losing control over the company that installed and operates its signaling. Although Vodafone owns the rest of Arcor, DB was able to veto the IPO, which was originally scheduled for March 2001 but was postponed indefinitely in December last year.