Germany plans to sell up to 24.9 per cent of railway operator Deutsche Bahn by the end of 2009 but will retain full control of the firm's track network, according to a German chancellery document obtained by Reuters.
The news comes a day after German Chancellor Angela Merkel vowed to press ahead with the major initial public offering (IPO) despite expressions of scepticism from the firm's chief that the long-delayed sale would happen.
"Private investors will be able to take a share of Deutsche Bahn AG in this legislative period," the document said. "The aim is to privatise up to 24.9 per cent of the holding."
The document, dated November 6th, comes from Ms Merkel's office and was distributed to the Transport Ministry, which has been overseeing the government's plans for the operator. The current legislative period is scheduled to end in the autumn of 2009.
"Private investors will not take a share of the railway infrastructure, which will remain in government hands," the document said, in a blow to Deutsche Bahn Chief Executive Hartmut Mehdorn.
In a letter to Ms Merkel obtained by Reuters late last month, Mr Mehdorn expressed "major doubts" that a listing would happen due to political disputes.
He also said he was frustrated by the resistance from Merkel's conservatives to his plan to privatise the company together with its track network.
Deutsche Bahn is one of the country's biggest firms and had turnover of about €25 billion ($31.94 billion) last year. It is the last big company in Germany over which the government retains full control.
Mr Mehdorn has ambitious expansion plans for the company and has warned the government that if there is no listing, it will have to spend billions of euros to support investments.