German railways drop sharesell off; ticket prices to rise

23rd September 2004, Comments 0 comments

23 September 2004 , BERLIN - Deutsche Bahn, Germany's state-controlled railway, said it was unlikely to go ahead with its plan to hold an initial public offering of shares by summer 2006. A statement said the plan "appears unrealistic" and that the railway's supervisory board and the government have agreed to "redefine the time schedule" for a sale of shares. Supervisory board chairman Michael Frenzel gave no new date for any share offering. Deutsche Bahn had been seeking part-privatisation by the spring

23 September 2004  

BERLIN - Deutsche Bahn, Germany's state-controlled railway, said it was unlikely to go ahead with its plan to hold an initial public offering of shares by summer 2006.

A statement said the plan "appears unrealistic" and that the railway's supervisory board and the government have agreed to "redefine the time schedule" for a sale of shares.

Supervisory board chairman Michael Frenzel gave no new date for any share offering.

Deutsche Bahn had been seeking part-privatisation by the spring of 2006, with the government hoping to make a firm decision next year subject to the company making profits in 2004.

However in the first six months of this year, the company had a loss of EUR 62 million. Although down on its loss of EUR 143 million in the same period last year, the reduction is much slower than the company had planned.

On Tuesday it announced it would increase long-distance ticket prices by an average of 3.1 percent in December, citing higher energy costs.

DPA

Subject: German news

0 Comments To This Article