German rail sale could bring 8 bln euros-minister

BERLIN, April 29 (Reuters) - The sale of a 24.9 percent government stake in German rail operator Deutsche Bahn [DBN.UL] could bring in revenues of up to 8 billion euros ($12.53 billion), Transport Minister Wolfgang Tiefensee said on Tuesday.

Senior members of Germany's ruling coalition sealed an agreement late on Monday that paves the way for a partial privatisation of the rail operator by the end of the year, although Tiefensee said market conditions would determine the precise timing of the long-delayed sale.

"We have estimates from different investment banks ranging from 5 to 8 billion euros," Tiefensee told Deutschlandfunk radio. "Now we have to find the right time to sell these shares."

Tiefensee said the government hoped to push through the sale in November or December of this year.

"If the market doesn't allow this, then we may need to wait one, two or three months," he said.

Until now, most estimates of the value of the stake have been in the 5 to 6 billion euro range.

"The Bahn is a very special company and it can't be compared to others," Tiefensee said. "It is a safe investment that promises long-term success, both in terms of profits and the value of the stock itself. I am sure investors will come."

The sale is due to be signed off in cabinet this week and then parliamentary groups will discuss it ahead of a decision in the lower house of parliament before the summer break.

The issue of privatising Germany's last major state-owned enterprise has stirred controversy for years with opponents claiming service will deteriorate and Deutsche Bahn's workers will suffer.

Company management agreed last week with labour unions that there will not be any lay-offs for the next 15 years as a result of the privatisation.

Although Chancellor Angela Merkel's conservatives have said the sale will be a first step in the process of privatising the firm, Tiefensee, a Social Democrat (SPD), said he expected Deutsche Bahn workers to receive written guarantees that no further sales would take place.

Deutsche Bahn, one of the biggest transport companies in the world and Germany's largest employer, has annual revenues of around 30 billion euros and more than 220,000 staff.

(Writing by Noah Barkin; editing by Rory Channing)