(Bloomberg) -- A Deutsche Bahn AG labor union will try to block the agreed €14.3 billion ($16 billion) sale of subsidiary DB Schenker to Danish freight firm DSV A/S, Frankfurter Allgemeine Zeitung reported.
Staff representatives of the EVG union are planning to vote against the deal at a crucial supervisory board meeting of the German railway operator on Wednesday, the newspaper said. EVG chief Martin Burkert said the sale of DB Schenker would lead to job losses and hurt the country as a business location.
“Politicians and the management board are portraying the sale of our crown jewels as strategy,” Burkert was quoted by the newspaper as saying. He also said there was no guarantee that the proceeds will be used to lower Deutsche Bahn’s debt, as foreseen.
However, while the company’s supervisory board is equally split between labor and shareholder representatives, EVG alone doesn’t have the power to torpedo the deal. According to a separate report from the DPA press agency, it’s not clear if other staff representatives will join EVG’s protest.
Should there be a tie on the 20-member supervisory board, chairman Werner Gatzer would have the power to break it with his double voting right.
--With assistance from Eyk Henning.
©2024 Bloomberg L.P.
