Exclusive Deutsche Bahn Postpones Plan to Divest Parts of International Operations
German state-owned rail operator Deutsche Bahn has postponed a decision to sell parts of its international operations, according to its chief executive. Deutsche Bahn chief executive Rüdiger Grube wants to sell off parts of its international train and bus subsidiary Arriva, and logistics group Schenker, hoping to raise some €4.5 billion , or $4.9 billion, from the sale to rein in debt and finance restructuring and growth plans. However, faced with opposition from German politicians, who ultimately own and control Deutsche Bahn, Mr. Grube said on Tuesday he had postponed his divestment plan. “We have decided that we won’t force that,” Mr. Grube was quoted as saying at an event in Berlin by news agency Reuters. Handelsblatt reported the political opposition last week. Deutsche Bahn, which is expected to have made a loss of €1.3 billion last year, has cancelled an extraordinary meeting of its supervisory board, which represents shareholders’ and employees’ interests and was originally scheduled to convene on February 8. Mr. Grube said he is still committed to sellling parts of the subsidiaries over the medium-term, but stressed that Deutsche Bahn would keep majority stakes in the units, news agency DPA cited him as saying at the event in Berlin. During one of the supervisory board next meetings, the topic would again be on the agenda.
01/20/2016 - 10:39 AM