CVC would 'safeguard DB Schenker jobs and its independence'
DB Schenker would remain independent and not merge with Scan Global if acquired by CVC ...
© Mohamed Ahmed Soliman
By Stuart Todd
CVC Capital Partners, which is leading a consortium to acquire DB Schenker, yesterday sent a letter to Deutsche Bahn’s management and supervisory boards setting out the benefits of its proposed ‘alternative’ offer, which would see DB reinvest €1bn to keep a stake of up to 24.9% in the logistics firm, according to a well-placed source.
CVC has now guaranteed that Deutsche Bahn would generate €2bn to €2.5bn of proceeds from the reinvestment on the remaining stake when CVC exits the investment, according to the letter, meaning the alternative offer is worth at least €16bn in total.
CVC has also offered about €14bn for 100% of Schenker’s capital as has Denmark’s DSV.
Last week, the source told The Loadstar that CVC’s proposals make provision for DB Schenker to remain independent and maintain its brand. Its HQ would remain in Germany and jobs would be safeguarded in Germany. When market conditions permit, an IPO could be launched.
In an extract of the letter, seen by The Loadstar, CVC said: “We feel compelled to send you the key points of our (alternative) offer directly, as to our knowledge our complete offer was neither presented in detail nor discussed in the relevant steering committee.
“Accordingly, it cannot be included in the decision-making process of the Management Board and Supervisory Board regarding the sale of DB Schenker at this point in time, although it is financially and economically significantly superior to the other offers.”
The letter, which DB has yet respond to, followed a Reuters report last Friday which claimed that DSV was “slightly ahead “in the bidding race for Schenker, quoting several people familiar with the sales process.
The report added: “DSV’s offer is currently seen as the most attractive, the sources said after a meeting of a government committee that evaluated the bid along with a competing bidder, a consortium led by CVC Capital Partners.”
However, it did not elaborate on why DSV’s bid is deemed the most attractive.
Preserving employment at DB Schenker – more than 76,000 staff in more than 130 countries – has always been a major consideration in the sale process.
German newspaper Der Spiegel reported recently that labour union Ver.di has been campaigning heavily in favour of the CVC bid. In an internal document, the union calculates that 5,300 jobs could be lost in the event of a DSV takeover.
In a statement issued today, the union said: “Over the past few months, ver.di has closely followed the sale process of DB Schenker and has always stood up for the interests of the employees. In close coordination with the General Works Council, the trade union has taken a clear public stance and campaigned vigorously for as many jobs as possible to be saved and for collective wage agreements to be maintained.
“Tomorrow, Wednesday, the General Works Council is calling on all employees to send a strong signal and make our concerns clear.”
At 12 noon, simultaneous vigils are planned for 15 minutes at all DB Schenker offices nationwide during employees’ free time.
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