CVC Presses Case for Schenker Bid to Deutsche Bahn Officials

Private equity firm CVC Capital Partners is urging Deutsche Bahn (DB) to consider its takeover bid for Schenker, the German railway operator's logistics unit

CVC has been in talks with DB about a potential deal for Schenker, which could value the unit at up to €20 billion ($22 billion). However, DB has so far been reluctant to sell Schenker, which is one of its most profitable businesses.

In a letter to DB's management board, CVC said that it believes its bid for Schenker is "compelling" and would create "significant value" for both DB and its shareholders.

CVC has outlined a number of benefits of its bid, including:

• A cash injection of up to €20 billion that could be used to reduce DB's debt or invest in other growth areas.
• The creation of a standalone logistics company that would be able to compete more effectively in the global market.
• The opportunity for DB to focus on its core rail business.

CVC is also said to have offered to keep Schenker's headquarters in Germany and to protect the jobs of its employees.

DB is expected to make a decision on CVC's bid in the coming weeks. However, it is possible that the German government could intervene to block the sale of Schenker, which is seen as a strategic asset.

The potential sale of Schenker comes at a time when DB is facing a number of challenges, including rising costs and competition from private operators.

DB has been trying to improve its financial performance in recent years, and the sale of Schenker could provide it with a much-needed cash injection.

However, the sale of Schenker would also be a significant strategic move, and it is unclear whether DB is willing to part with one of its most profitable businesses.