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Article: German cabinet backs DB sale plan.(News)
- Article from:
- International Railway Journal
- Article date:
- August 1, 2007
CopyrightCOPYRIGHT 2007 Simmons-Boardman Publishing Corporation. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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THE cabinet of German Chancellor Mrs Angela Merkel has approved draft legislation to partially privatize German Rail (DB). The legislation proposes the sale of at least a quarter of DB's shares by the beginning of 2009, although the government is constitutionally bound to retain a minimum shareholding of 51%.
The government estimates the sale of 25% of DB will raise 3 billion [euro]. However, a decision has yet to be made on whether these shares will be offered to large strategic investors or sold through a stock market flotation.
DB will continue to manage infrastructure and stations for 15 years before these assets are returned to the government. The ...