Update: German railway privatisation
On Apr29 the German coalition government confirmed its earlier decision to sell a 24.9% in German railway (Deutsche Bahn) to private investors.
The Federal government will maintain official ownership of the rail infrastructure, while economic control will be with the Bahn AG.
In confirming the key features of railway privatisation – for a comprehensive analysis see EZA805, Aug 2007 – the government is allowing a gradual shift of power within DB towards the management and outside DB to private investors.
Asset conclusions: while the investment outlook for railway (DB) stocks might be mixed, the decision can be seen as a market-friendly signal by the current government.
© EZA
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