Deutsche Bahn narrows list of bidders for Schenker to four, sources say

By Markus Wacket and Emma-Victoria Farr

BERLIN/FRANKFURT (Reuters) -Germany's Deutsche Bahn has selected four interested parties for the next stage of the bidding process for its logistics subsidiary Schenker, two sources familiar with the matter told Reuters on Friday.

One or more of the bids submitted by the four exceeds 15 billion euros ($16.26 billion), the sources said. Other bids came in between 13 and 14 billion euros, one of the sources added.

Earlier this year, Reuters reported that Schenker was expected to fetch between 12 billion and 15 billion euros ($13-$16 billion) to help the state-owned rail operator cut its debt.

The four bidders on the shortlist include a financial investor, a strategic investor, a European investor and one from the Middle East, one of the sources told Reuters.

Carlyle has dropped out of the race, having previously been in a consortium with CVC, one of the sources said. CVC is now in talks to team up with the Abu Dhabi Investment Authority (ADIA) and Singapore wealth fund GIC, according to the source.

CVC, Carlyle, ADIA and GIC declined to comment.

"In the past few weeks, bidders have had the opportunity to specify their non-binding offers for DB Schenker based on comprehensive information. These confirmed, non-binding offers have now been submitted and are being carefully evaluated before the next phase of the sales process begins quickly. The process is proceeding according to plan," a Deutsche Bahn spokesperson said in an emailed statement.

Six bidders had been in the running including Danish freight forwarder DSV, shipping companies Maersk and MSC, a consortium of financial investors CVC and Carlyle, as well Abu Dhabi sovereign wealth fund ADQ and Saudi logistics company Bahri, as previously reported.

Deutsche Bahn plans to select a buyer for Schenker by the end of the year and expects the deal to close in 2025, the sources said.

($1 = 0.9225 euros)

(Reporting by Markus Wacket in Berlin and Emma-Victoria Farr in Frankfurt, Writing by Friederike Heine, Editing by Rachel More and Elaine Hardcastle)