CVC Capital Partners have stepped up their efforts in the DB Schenker takeover war with DSV sending letters to Deutsche Bahn high-ranking officials. The private equity firm is seeking a fair assessment of its bid, which, according to a letter seen by Reuters could up the initial €14 billion offer to €16 billion. 

The CVC is said to have submitted two bids initially, one for a 100 per cent takeover of DB Schenker, while the second offer provides Deutsche Bahn with the option to reinvest in the logistics arm.

As Blomberg reports, CVC has provided DB with an option to reinvest €1 billion for a 24.9 per cent stake in DB Schenker, which would result in €2 to €2.5 billion in proceeds when CVC exits the investment. Such a deal would create more value for DB compared to the rival bid from DSV.

CVC used the same model in previous acquisitions, and such an approach is seen as a preferred option by employees representatives. Workers union Ver.di is leaning towards the CVC bid as it claims it would also save more jobs as well.

Read more: DB Schenker sale: provision to safeguard jobs the tie-breaker?

DSV’s response

As Ver.di’s letter to Deutsche Bahn was sent last month, DSV prepared a response of its own. Ver.di estimated that while DSV’s offer would provide more money to DB upfront, it could result in 5,300 jobs being cut. Bloomberg reports that DSV sent a letter to DB pledging to keep the job cuts between 1,600 and 1,900. It is reported that DB is leaning towards the DSV offer.

Furthermore, the company pledged to invest around €1 billion in DB Schenker within three to five years to make the business more profitable.

As it said last December when it kicked off the DB Schenker sale proceedings, DB aims to keep all the revenue from the sale and direct it towards reducing its debt.