1/13, 8:38 PM (Source: TeleTrader)
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Deutsche Bahn mulling Arriva sale - reports

German railway company Deutsche Bahn AG (DB) is considering selling its subsidiary Arriva, according to reports by German media on Sunday.

DB CEO Richard Lutz and CFO Alexander Doll will present the company's plans on the subject to German Transport Minister Andreas Scheuer on Tuesday morning in an effort to find a solution for the rail operator, which has come under increasing criticism in recent years for its lack of punctuality. According to estimates, DB could earn around €4 billion from the sale, which is reportedly being prepared by ex-investment banker Doll.

The plan also envisages the CEOs of three subsidiaries, DB Cargo, DB Fernverkehr and DB Regio, joining the group's Executive Board, which will then be comprised of eight members, to rectify the perceived lack of management cooperation. This would entail axing certain board positions at the subsidiaries, rendering the proposal cost-neutral according to the plans.

Breaking the News / DZ