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Germany considers selling Deutsche Bahn's Schenker - Finance Ministry document
October 24, 2017 / 4:30 PM / a month ago

Germany considers selling Deutsche Bahn's Schenker - Finance Ministry document

BERLIN, Oct 24 (Reuters) - The German government is considering selling at least a part of Schenker, the logistics arm of rail operator Deutsche Bahn, according to a Finance Ministry document seen by Reuters.

The document was sent to parliament’s budget committee, which had asked the ministry for proposals on how to stabilise state-owned Deutsche Bahn’s finances.

The ministry wrote: “A complete or a partial sale of Schenker AG could be taken up again.”

The budget committee asked for possible plans to improve Deutsche Bahn’s liquidity after the government provided the rail operator with a cash injection of 2 billion euros ($2.35 billion).

Deutsche Bahn last year hired banks to help it float its Arriva international passenger transport system as well as Schenker with the goal of raising 4.5 billion euros.

A finance ministry spokeswoman confirmed the letter had been sent to the budget committee but declined to comment on its content.

Two German parties that are exploring forming a coalition with Chancellor Angela Merkel’s conservatives support the idea of selling state assets, including a stake in Commerzbank .

The pro-business FDP and the Greens want to use the proceeds to fund investments in education and modern digital infrastructure.

Schenker was two years ago valued at 4 billion-5 billion euros.

$1 = 0.8501 euros Reporting by Tom Koerkemeier and Markus Wacket; Writing by Joseph Nasr; Editing by Edmund Blair

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