Germany gives green light to Deutsche Bahn partial IPO
The German cabinet of Chancellor Angela Merkel Tuesday gave the all-clear to a partial privatization of state-owned rail and logistics giant Deutsche Bahn, owners of Schenker and BAX Global.
The government plans to sell from 20 percent to 25 percent of Deutsche Bahn but keep a minimum of 51 percent of the company’s assets, said Transport Minister Wolfgang Tiefensee.
The sale “strikes a balance between securing the type of national rail service we want and giving the company freedom to grow,” Tiefensee said. “I expect the company can go to capital markets to seek finance to expand at the end of 2008.”