KfW, a state-owned bank, lowers its holdings in Deutsche Telekom; the acquired funds will be funneled into Deutsche Bahn.
The sale of shares could bring in 2.5 billion euros. The money from these sales is planned to be used, as per the Finance Ministry, "to reinforce the equity of Deutsche Bahn AG and create modern rail infrastructure in Germany."
The government is carrying out its "prudent policy of privatization" with this deal, stated the Ministry of Finance, headed by Finance Minister Christian Lindner (FDP). The KfW and the government will remain the main shareholders of Deutsche Telekom and will "maintain a significant stake" in the company, as per the announcement made by the lender and the ministry.
