Editions:  Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland

Deutsche Bahn shares reportedly to cost €20-€24

Share this article

14:46 CEST+02:00
The shares of Germany’s national railway operator Deutsche Bahn will cost between €20 to €24 a piece, business daily Financial Times Deutschland reported on Friday.

The price for the share offering would fit with the expectations of both financial market analysts and politicians. The German government agreed earlier this week to a partial privatization of Deutsche Bahn. At the price reported by the FTD, floating 24.9 percent of the rail company would raise €5 billion to €6 billion.

But German Transport Minister Wolfgang Tiefensee on Tuesday said he expected the partial privatization could rake in up to €8 billion ($12.5 billion) for the government.

“That is clearly too high, that will poison everything,” a German banker told the paper.

The FTD reported that the final price for the Bahn stock would be finalized in early November.

Private investors will be able to invest in up to 24.9 percent of the rail unit involved in freight and passenger traffic, following the German cabinet’s approval of the partial privatization proposal on Wednesday. Deutsche Bahn’s 34,000 kilometre (21,127 miles) network of tracks, train stations and energy supplies will remain in public ownership.

However, the plan still must be backed by parliament before the summer break. It also needs approval from Germany's 16 federal states, several of which fear the closure of stations and smaller lines as part of any overhaul.

Get notified about breaking news on The Local

Share this article

From our sponsors

QUIZ: Which influential Icelander are you?

Iceland may have a population of just over 330,000 people (all with equally unpronounceable names) but that doesn't stop it churning out a stream of globally-renowned people. Take our quiz to discover your Icelandic spirit animal.