EU criticises new structure of rail operator Deutsche Bahn
AFX UK: 2008-06-27 07:48
FRANKFURT -- The European Commission has criticised in a formal letter to the German government the new company structure of rail operator Deutsche Bahn AG. that is slated for privatisation later this year, Financial Times Deutschland reported.
The report cited Commission sources.
The German government has decided to sell a 24.9 percent stake in Deutsche Bahn's DB Mobility Logistics unit in an initial public offering (IPO) expected for November, while its rail network and station assets will remain state-owned.
The EU Commission has doubts the new structure ensures the independence of new rail network operator DB Netz from Deutsche Bahn, needed to ensure fair access to the network by competitors.
The Commission fears Deutsche Bahn board members could influence decisions on the allocation of rail tracks to competitors, according to the report.
It said the Commission is calling for a ban on moves of executives between DB Mobility Logistics and DB Netz for a certain period.
frederik.richter@thomsonreuters.com fr1/ms1