Germany hopes to raise 1.25 billion euros from rail privatisation
AFP: November 28, 2005
The German government expects to be able to raise 1.25 billion euros (1.5 billion dollars) by listing 25 percent of the share capital of the Deutsche Bahn rail operator on the stock exchange.
Deutsche Bahn employees work on a railroad embankment in Berlin.
The partial privatisation would take place sooner than planned and the proceeds would be used to help finance a number of government projects, the Handelsblatt business newspaper said Monday, quoting political sources.
Deutsche Bahn chief Hartmut Mehdorn has said the rail operator will be ready to take its first steps on the stock market next year.
But the previous government under Gerhard Schroeder put the brakes on the privatisation plans, arguing that the group was not profitable enough.
Recent press reports have said the new government is set to reach a decision early next year on the conditions for a flotation.