FRANKFURT (Reuters) - Germany's state-owned railway Deutsche Bahn [DBN.UL] has put plans for a partial privatisation of Arriva and Schenker on ice due to Britain's decision to exit the European Union, its chief executive said, confirming media reports.
Deutsche Bahn's management will tell the company's supervisory board at a meeting on Dec. 14 "We cannot recommend a stock market flotation based on the current assessments," German news agency DPA quoted Ruediger Grube as saying on Friday.
German daily Handelsblatt reported in September that Deutsche Bahn was dropping its plans for an initial public offering, citing a supervisory board member.
Deutsche Bahn had planned to sell shares in British subsidiary Arriva and logistics unit Schenker to raise 4.5 billion euros (4 billion pounds) to help service close to 20 billion euros of debt.
But Grube told DPA that Brexit had fundamentally changed the situation. "We would be throwing money out the window, and that would be foolish," he said.
In addition, Deutsche Bahn's need for cash is less pressing after Germany agreed in September to inject 1 billion euros of cash into Deutsche Bahn, with the prospects for another 1.4 billion over the coming four years.
