Equity firm CVC, which got the short end of the stick in the DB Schenker acquisition race, is ready to boost its bid for the Deutsche Bahn logistics subsidiary. At the same time, the investment company is certain that its current offer is superior to DSV’s winning bid, and demands transparency from Deutsche Bahn about the decision making process.
In a letter to Deutsche Bahn, CVC told the rail operator that it is ready to put more on the table for DB Schenker than the original 14 billion euro offer. CVC says that its current offer for DB Schenker is superior to DSV’s, and is calling upon Deutsche Bahn to conduct a fair and transparent acquisition process.
“If Deutsche Bahn was of the view that there were any residual uncertainties as to how the two offers compare, we would be prepared to discuss an increase of the equity value of our offer to fully remove any such concerns”, CVC says in the letter, which was obtained by Bloomberg.
DB Schenker sale still needs confirmation
Earlier this month, DSV announced that it had won the race for the DB Schenker acquisition. The Danish logistics company is putting 14 billion euros on the table for the purchase, which would propel it forward to become the largest freight forwarding company globally.
The purchase still needs to be confirmed by a supervisory board, which means that there is technically still a possibility that the purchase can go off the rails. It seems that CVC is taking its chance to snatch DB Schenker away from DSV at the last moment.