Deutsche Bahn says privatisation draft law not unconstitutional |
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Tue, 15 May 2007 11:48
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FRANKFURT (Thomson Financial) - Deutsche Bahn AG said concerns that a planned law that would allow for its privatisation may breach constitutional law are 'unfounded,' citing two independent legal opinions.The draft law 'thoroughly conform with constitutional guidelines', the company said in a statement, citing opinions by constitutional law professor Rupert Scholz and corporate law professor Peter Hommelhoff.Germany's Basic Law demands only that state-owned rail companies must remain majority-controlled by the government, which does not mean that the government must also own more than half of the company's shares, Deutsche Bahn cited Scholz as saying.Hommelhoff added that the government need not be guaranteed control over the company operating business, according to Deutsche Bahn's statement.Deutsche Bahn is earmarked to be partially floated in an initial public offering by 2009.maria.sheahan@thomson.commas/cmlCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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Germany's Glos rejects Deutsche Bahn railway privatisation draft law - report 