BERLIN (Reuters) - German rail operator Deutsche Bahn is likely to seek heavyweight new investors for its two major international businesses rather than pursue an initial public offering (IPO), a supervisory board source told Reuters.
State-owned Deutsche Bahn is looking to raise money by selling stakes in its Arriva passenger transport business and Schenker logistics business.
Asked about a stock market flotation, the source said however: “That is not the route we want to follow.”
The company is likely instead to try to find a strategic investor or pension fund to take a minority stake in either of the businesses. The supervisory board is expected to approve such a step in December.
Deutsche Bahn’s operating profit fell almost six percent to 2.1 billion euros ($2.4 billion) last year when the company made more than 40 percent of its profit abroad.
Political opposition means it is not possible to privatize the company but the sale of a stake in its international operations is less controversial.
A previous attempt to sell a minority stake in Deutsche Bahn was canceled when the global financial crisis hit in 2008.
Reporting by Markus Wacket; Editing by Keith Weir and David Stamp