With financial markets in turmoil, it may not be the best time to be planning an initial public offering of shares in a government operation that just about every elected official in Germany sees as a political football. But that isn't stopping Deutsche Bahn, the giant German railroad, from going ahead with what may turn out to be the last big privatization of former state monopolies in the largest economy in Europe, and probably the largest offering this year. The German government is hoping to raise €8 billion, or $11.8 billion, from the sale. Hartmut Mehdorn, Deutsche Bahn's chief executive, said a furious round of road shows since the German parliament approved the sale in late May have convinced him that investors will lap up the 24.9 percent to be put on the block so that they can own a piece of a profitable company expected to chalk up more than €30 billion in sales this year.
With financial markets in turmoil, it may not be the best time to be planning an initial public offering of shares in a government operation that just about every elected official in Germany sees as a political football.
But that isn't stopping Deutsche Bahn, the giant German railroad, from going ahead with what may turn out to be the last big privatization of former state monopolies in the largest economy in Europe, and probably the largest offering this year. The German government is hoping to raise €8 billion, or $11.8 billion, from the sale.
Hartmut Mehdorn, Deutsche Bahn's chief executive, said a furious round of road shows since the German parliament approved the sale in late May have convinced him that investors will lap up the 24.9 percent to be put on the block so that they can own a piece of a profitable company expected to chalk up more than €30 billion in sales this year.
