MKTS: Unions reported to vote against Deutsche Bahn's sale of DB Schenker – FAZ

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MARKETSCREENER reports:

The EVG trade union plans to vote against Deutsche Bahn’s sale of logistics company DB Schenker to Danish DSV at an upcoming board meeting on Wednesday. This is according to the Frankfurter Allgemeine Zeitung.

EVG opposes the deal because they see it leading to job losses and damaging the country as a business location.

“Politicians and the board are portraying the sale of our crown jewels as a strategy,” EVG chief Martin Buckert told the paper angrily. He also questions plans to use the proceeds to reduce Deutsche Bahn’s debt. According to Buckert, there is no guarantee of this, he says in the interview.

Deutsche Bahn’s supervisory board consists of 20 people, equally divided between union and shareholder representatives. This means that the EVG alone will not have enough power to stop the deal.

DSV competed with private equity firm CVC Capital to acquire DB Schenker, which employs more than 70,000 people in 1,850 locations worldwide.