Private equity firm CVC has made a change to its offer for DB Schenker. Its direct competitor for the sale, DSV, is reportedly slightly favoured to come out on top. Now, CVC is raising the stakes.
CVC is now offering an additional payment of at least 1 billion euros to Deutsche Bahn in case of a future initial public offering (IPO) exit. That offer would stand if the German government goes along with CVC’s bid, in which the state would remain a minority stakeholder in DB Schenker, Reuters writes.
Two offers
Reportedly, CVC made two offers for the logistics company. The alternative is a scenario in which CVC acquires 100 per cent of DB Schenker, and it offers around 14 billion euros for it. In the scenario where the German state remains a minority stakeholder, CVC is willing to put 16 billion euros on the table.
The private equity firm is competing with DSV for the acquisition of DB Schenker, and the latter was reported by Reuters to be slightly ahead in the race. Nevertheless, DSV also sweetened its bid by saying that it wants to invest around 1 billion euros in DB Schenker within three to five years to make the business more profitable.
