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Deutsche Bahn’s €14 Billion Unit Sale Faces Decisive Vote

A DB Schenker logistics hub in Grossbeeren, Germany. Photographer: Liesa Johannssen/Bloomberg (Liesa Johannssen/Bloomberg)

(Bloomberg) -- Deutsche Bahn AG’s planned €14.3 billion ($15.8 billion) sale of its logistics arm is facing a decisive vote Wednesday.

The state-owned company’s supervisory board is meeting to vote on the planned sale of DB Schenker to Danish transport group DSV A/S, people with knowledge of the matter said. Losing bidder CVC Capital Partners Plc is still hoping the board rejects the agreement, according to the people, who asked not to be identified because the information is private. 

Deutsche Bahn officials are expecting a tight vote, with some union representatives poised to reject the deal, according to the people. Some other supervisory board members have also expressed concerns about the deal and may still be undecided, the people said.

The 20 seats on the supervisory board are equally split between labor and shareholder appointees. The agreement with DSV has already won the blessing of Deutsche Bahn’s management board, so Wednesday’s vote is the final step needed to ratify it. Supervisory boards usually follow the recommendation of the management board, but the concerns voiced by some members have made the pending vote more suspenseful.

Germany’s EVG railway and transport union, which has two seats on Deutsche Bahn’s supervisory board, said earlier this week it opposes the sale to DSV and called for job guarantees. Deutsche Bahn reiterated on Sept. 30 that DSV had made the “highest and most attractive” offer after a fair and clearly structured sales process.

A representative for Deutsche Bahn declined to comment beyond previous statements. Spokespeople for CVC and DSV also declined to comment. 

--With assistance from Christian Wienberg.

(Updates with DSV response in last paragraph)

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