Deutsche Bahn could be ready for IPO by 2011-sources

BERLIN, July 14 (Reuters) - German state railways Deutsche Bahn [DBN.UL] could again be ready for a listing on the stock exchange in 2011, sources at Deutsche Bahn familiar with the company's internal planning told Reuters on Tuesday.

Deutsche Bahn wants to boost earnings by 2011 to be fit for the capital markets, the sources said.

According to the internal planning, the Bahn aims to have a return on capital employed (ROCE) of 14 percent by 2011 and an operating EBIT margin of seven percent for its transport and logistics unit DB ML, which is due to be privatised.

That would get restore the unit to profitability levels achieved in 2007 and 2008 before the global recession hit earnings and contributed to cancelling the IPO in late 2008.

A Bahn spokesman declined to comment on internal planning.

Germany in October dropped the plans to privatise nearly a quarter of the group's transport, logistics and services business amid financial market turmoil.

The listing was due to be Germany's biggest since 2000, but estimates about what the share offering would raise dipped sharply as market convulsions intensified.

Deutsche Bahn Chief Executive Ruediger Grube has said the railways could revive plans to list shares as early as next year if the economic conditions allow.

(Reporting by Markus Wacket; writing by Erik Kirschbaum)