Russian Railways eyeing 5 pct of D.Bahn-report

BERLIN, Sept 25 (Reuters) - Russian Railways (RZhD) is interested in buying up to 5 percent of Deutsche Bahn AG [DBN.UL] when the German railway operator is partially privatised later this year, the Russian group's president was quoted as saying on Thursday.

"We are thinking of trying to obtain approximately a 5 percent stake," Vladimir Yakunin told the International Herald Tribune.

"For us, integration is an essential part of our strategy. Obtaining a stake in Deutsche Bahn's international public offering would be a good investment," he told the paper.

Deutsche Bahn's Chief Executive Hartmut Mehdorn has said he would not be opposed to the German rail operator's Russian counterpart taking a stake in the company.

No exact date for the partial privatisation has yet been made public but a source close to Deutsche Bahn has told Reuters that the company is looking at Oct. 27 as a possible date.

The German government hopes to raise at least 5 billion euros ($7.4 billion) from the sale of a near-25 percent stake in Deutsche Bahn's transport, logistics and services businesses in what promises to be Germany's biggest flotation in eight years.

Russian Railways said this week it would delay initial public offerings of two subsidiaries planned for this year until no earlier than 2011 due to poor market conditions.

"I am not going to sell valuable goods cheaply," Yakunin was quoted as saying by the International Herald Tribune. "I am not under pressure. We don't need the money. I will wait until the markets are better." (Reporting by Kerstin Gehmlich; Editing by David Holmes)