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by Magnifico On Thursday, the partial privatization scheme for Deutsche Bahn by the German government was postponed and, according to German commentators, it is unlikely ever to get back on track. The privatization scheme was disrupted by the worldwide financial crisis. Deutsche Welle reports the German Government Postpones Deutsche Bahn Share Listing.
The German government has announced that it will postpone an initial listing of shares in the national railway Deutsche Bahn "for at least several weeks," a source close to the matter said on Thursday... Promoted by -- you never guess it -- DoDo
Spiegel Online has a round up of German newpaper reports about 'A Deathblow to Privatization' for Deutsche Bahn.
Among the objects of second-guessing are plans to privatize Deutsche Bahn, Germany's national railway company. The initial public offering process had been scheduled to begin on Monday and the company, expecting to take in upwards of 4 billion, had already been courting international investors for months. Despite assurances from Germany's ruling "Grand Coalition" between Christian Democrats and Social Democrats, German newspaper commentators are skeptical. My personal favorite comment came from the business daily Handelsblatt that wrote:
The fact is, the already botched, partial privatization of the Deutsche Bahn received on Thursday ... it's death blow. And that's a good thing. The Wall Street Journal reports on the IPO delay
Getting the IPO back on track could prove a challenge. German politicians have long been divided about privatizing Europe's largest railway network, and efforts by free-market advocates have been stymied for years... I wonder why that is? Maybe this international financial meltdown, where financial institutions are being nationalized, shows how capitalism has failed? Maybe because taking something owned by the public and putting it into to private hands isn't such a winning idea after all? |
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LQD: Deutsche Bahn privatization derails | 25 comments (25 topical, 0 editorial, 0 hidden)
LQD: Deutsche Bahn privatization derails | 25 comments (25 topical, 0 editorial, 0 hidden)
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