Dubai, Abu Dhabi eye Bahn stakes

BAHN STAKE: Deutsche Bahn executives recently met institutional investors in Dubai and Abu Dhabi about taking stakes in the rail operator. (Getty Images)

Deutsche Bahn chief executive Hartmut Mehdorn and chief financial officer Diethelm Sack recently met institutional investors in Dubai and Abu Dhabi about taking stakes in the rail operator, a magazine reported.

A spokesman for the German rail operator, which is pushing ahead with plans for a stock market listing later this year, declined to comment on the report, which will appear in Monday's edition of Der Spiegel magazine.

The report quoted Bahn sources as saying the representatives from both banks and investment funds were "very interested" in obtaining stakes in the IPO, which is expected to be Germany's biggest flotation since 2000.

Mehdorn has previously said that Russian investors were interested in obtaining a stake.

The government expects the IPO to raise between 5 billion and 8 billion euros ($7.9-$12.6 billion).

Some 80-90 percent of the shares are expected to go to long-term institutional investors, with only 10 percent likely to go to retail investors and employees.

Under the plan, 24.9 percent of Deutsche Bahn's passenger transport, logistics and services businesses will be sold, while the track, stations and energy supply will remain the property of the state.

Proceeds from the sale will be used to fund expansion in Deutsche Bahn's logistics business, including through acquisitions and joint ventures in growth areas such as eastern Europe. (Reuters)

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