GERMANY - The German government has halted plans to list parts of the federal railway company Deutsche Bahn (DB) on the stock exchange because of market turbulence.
The IPO of up to 24.9% of DB's subsidiary DB Mobility Logistics had been planned for 26 October.
"We have postponed it in agreement with the finance ministry and no new date has been set yet," a spokesman for the railway confirmed to IPE Real Estate.
The finance ministry had noted earlier that the listing had been put on hold for now "in light of the extreme uncertainties on the financial markets and to ensure a fair price".
"The listing of DB will come. But we will not put federal money onto the capital markets at the wrong time," explained Peer Steinbrück, finance minister.
"As soon as the market environment can ensure a successful IPO we are ready. The course is set."
Hartmut Mehdorn, chairman of DB Mobility Logistics, pointed out investor feedback has been "very positive" so far.
"We will keep an eye on the market and continue the dialogue with potential investors in the meantime," added Diethelm Sack, head of finance and controlling at the DB subsidiary.
The DB group has had a new structure since mid-May which split the company so the DB AG, which owns railtracks, railway stations and the railway energy provider, remains in federal hands.
DB Mobility Logistics AG was also created to run passenger traffic and buses in the cities owned by the federal railways which also contains the subsidiary DB Schenker Logistics, the transport segment of the group.
DB Mobility Logistics reported a turnover in 2007 of €31bn, compared to almost €30bn the year before, with an EBIT of €1.9bn and gross investments of €1.4bn.