CVC throws down gauntlet to DB over Schenker sale with ‘superior’ offer

Private equity firm goes public with details of its improved bid, claiming it offers ‘compelling value’ for DB and its shareholders

CVC Capital Partners has set out the benefits of its 'superior' offer for Schenker in a letter to Deutsche Bahn (DB), the German state-owned rail operator.

In a letter sent to DB's management board on Monday, CVC said its offer of €5.5 billion for a majority stake in Schenker was "a compelling value proposition for DB and its shareholders".

CVC said its offer was superior to DB's own plans for Schenker, which would see the division listed on the stock market through an initial public offering (IPO). CVC said this option would lead to significant uncertainty for DB and its shareholders in the current market environment.

CVC also said it had received "strong interest" from potential co-investors in its bid, which would provide DB with additional financial flexibility.

DB is currently reviewing its options for Schenker, which is one of the world's largest logistics companies. The company has said it is open to selling a majority stake in Schenker, but it has not yet made a decision on whether to accept CVC's offer.

CVC's offer for Schenker comes at a time when the logistics industry is facing a number of challenges, including rising costs, labor shortages, and geopolitical uncertainty.

However, CVC said it believes Schenker is "well-positioned to navigate these challenges and emerge as a stronger company".

The company said it has a "proven track record of working with management teams to grow and transform businesses", and it has a "deep understanding of the logistics industry".

CVC said it is "confident" that its offer for Schenker is "the best option for DB, Schenker, and its employees".