Deutsche Bahn 'nears Arriva deal'

[TDK]

The DFT & WAG will welcome DB, The All Wales Franchise stock is falling apart, and sorry to say Senior Management at Pentaeith house have acted
like headless chickens carrying too much personal baggage instead of looking to win the next franchise,

It's about time the senior managment did some proper work and were shaken up, db won't take any prisoners or managers wasting cash this can only be a good thing for the Welsh railways

 

[anthony263]

Deal has been confirmed according to reports on other forums, press conference expected 10:00 tommorow

 

[HSTfan!!!]

hmm doesn't seem to be anything official out, if it's true better start talking german lol

 

[DaveNewcastle]

D.Bahn board approves bid for Arriva
This should be official enough !

BERLIN, April 21 (Reuters) - Deutsche Bahn's [DBN.UL] supervisory board approved a 1.5 billion pounds ($2.31 billion) bid for Britain's Arriva (ARI.L) on Wednesday and the German rail operator called a news conference for Thursday where the proposed deal is expected to be unveiled.

Reuters reported on Monday that Deutsche Bahn was preparing the 775 pence per share offer. Arriva later confirmed it was in advanced talks with the state-owned German firm on a deal that would also give its shareholders a final dividend of 18.8 pence.

Two participants in the supervisory board meeting said the offer had been approved and Deutsche Bahn Chief Executive Ruediger Grube later told Reuters at a conference in Berlin that he was "very pleased" with the board decision.

Asked about criticism that the price was too high, Grube said: "If it was too expensive, we would not have done it."

The firm said in a statement that Grube would hold a news conference at 10 a.m. (0800 GMT) in Berlin on Thursday.

Sunderland-based Arriva, Britain's third-biggest bus company, runs buses, rail franchises and other services in 12 European countries, making it one of the continent's few public transport operators with a wide international footprint.
In early March, it ended talks with SNCF over an equity tie-up with the French state railway group's transport unit Keolis.

Deutsche Bahn's top management had asked the board for the power to react quickly with a new offer in the event of a counterbid from another company, such as SNCF, sources told Reuters.

But the board declined to give them fast-track powers, saying the offer price was generous.

"The bid lies at the upper limit of Arriva's worth," one board member told Reuters.

Sources told Reuters earlier this week that the offer totalled 2.7 billion euros ($3.63 billion) when Arriva's debt was included.
($1=.6495 Pound) ($1=.7439 Euro)
(Reporting by Markus Wacket, writing by Paul Carrel and Noah Barkin; Editing by Hans Peters)

 

[merlodlliw]

http://news.bbc.co.uk/1/hi/business/8636503.stm


Ill be interested to see who is put in charge of The All Wales Franchise
after the baggage as been cleared out of Pentaith House, a small part
of the deal, ATW or DBW need to install professionals in Cardiff HQ urgently.

 

[DaveNewcastle]

Reuters News

LONDON, April 22 (Reuters) - Deutsche Bahn's [DBN.UL] agreed takeover of British rail and bus operator Arriva (ARI.L) marks the start of transport liberalisation and consolidation wave in Europe, Bahn's chief executive said on Thursday.

Ruediger Grube told a conference call with journalists that he expected DB-Arriva to become one of just a few strong players in Europe.

"We intend to be the drivers and not the driven," Grube said, adding that the merger was aimed at growth, not cost cuts.

Deutsche Bahn's offer, which was approved by the German rail operator's supervisory board on Wednesday, values the share capital of Arriva at about 1.585 billion pounds ($2.4 billion).
Arriva shareholders will receive 775 pence in cash for each share in Arriva they hold and also will be entitled to a final dividend of 18.8 pence per share.

(Reporting by Paul Hoskins in London and Jonathan Gould in Frankfurt)

And . . . . from DB . . .

Deutsche Bahn AG 22 April 2010
For Immediate Release

22 April 2010

DEUTSCHE BAHN AG

RECOMMENDED CASH OFFER FOR ARRIVA PLC

to be implemented by way of a Scheme of Arrangement
under Part 26 of the Companies Act 2006

SUMMARY

* The boards of directors of Deutsche Bahn and Arriva are pleased to announce that they have reached agreement on the terms of a recommended cash offer for the entire issued and to be issued share capital of Arriva, to be made by a wholly-owned subsidiary of Deutsche Bahn. It is intended that the Acquisition will be implemented by way of a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006. * Under the terms of the Acquisition, Arriva Shareholders will receive 775 pence in cash for each Arriva Share they hold, valuing the entire issued and to be issued share capital of Arriva at approximately GBP1.585 billion. * In addition, Arriva Shareholders on the register at close of business on 9 April 2010 will be entitled to retain the proposed final dividend of 18.8 pence per Arriva Share in respect of the financial year ended 31 December 2009 which, subject to it being approved by Arriva Shareholders at the Arriva Annual General Meeting on 6 May 2010, will be paid on 10 May 2010. * The offer price of 775 pence per Arriva Share represents: - a premium of approximately 34 per cent. to the Closing Price of 579.5 pence per Arriva Share on 16 March 2010, being the last trading day prior to Arriva's announcement that it had received an unsolicited approach from a third party; and - a multiple of approximately 13.2 times Arriva's 2009 adjusted earnings per Arriva Share of 58.8 pence. * Deutsche Bahn believes that there is strong strategic logic for a combination of Arriva and Deutsche Bahn. The combined group will be a truly international transport and logistics business, being one of the leading passenger transport groups in Europe, with the necessary scale, knowledge and experience to ensure effective competitiveness in increasingly liberalised transport markets. * The Directors of Arriva, who have been so advised by Rothschild and Deutsche Bank, consider the terms of the Acquisition to be fair and reasonable. In providing their advice to the Directors of Arriva, Rothschild and Deutsche Bank have taken into account the commercial assessments of the Directors of Arriva. Accordingly, the Directors of Arriva intend unanimously to recommend that Arriva Shareholders vote in favour of the Scheme and the resolutions to be proposed at the Court Meeting and the General Meeting, as they have irrevocably undertaken to do in respect of their entire beneficial holdings of Arriva Shares (amounting to, in aggregate, 770,476 Arriva Shares, representing approximately 0.39 per cent. of the existing issued share capital of Arriva).

Commenting on the Acquisition, Dr Rüdiger Grube, Chief Executive Officer of Deutsche Bahn said:

"Arriva's activities will strengthen Deutsche Bahn's strategic positioning in Europe, principally through Arriva's successful targeting of Europe's increasingly liberalised and fast growing transport markets which are of strategic interest to Deutsche Bahn. Arriva will give Deutsche Bahn the platform to expand in Europe and enhance its position as one of Europe's leading passenger transport groups."

Commenting on the Acquisition, Sir Richard Broadbent, Chairman of Arriva, said:

"The management team and employees have succeeded in building Arriva into a leading independent European passenger transport business with a presence in 12 countries. Deutsche Bahn also recognises the opportunity there is in Europe and wants to build on our existing presence and skills to further develop these markets. This offer fully reflects the value of the business we have built and gives shareholders the opportunity to realise that value today."

This summary should be read in conjunction with, and is subject to, the full text of the following announcement (including its Appendices). The Acquisition will be subject to the Conditions and certain further terms set out in Appendix I. Appendix II contains the sources and bases of certain information contained in this summary and the following announcement. Appendix III contains details of the irrevocable undertakings received by Deutsche Bahn. Appendix IV contains the definitions of certain terms used in this summary and the following announcement.

11. DIRECTORS, MANAGEMENT AND EMPLOYEES

Arriva Management

Deutsche Bahn views Arriva's senior management team as a key strength of the business and intends to offer them significant responsibilities within the international business of the enlarged group. Deutsche Bahn intends to build on Arriva's international platform. Discussions between Deutsche Bahn and Arriva's senior management team about the team members' specific roles in the enlarged group, and the terms of their employment, have yet to take place. It is envisaged that such discussions will take place after the Acquisition has completed.

Arriva Employees

Deutsche Bahn recognises the contribution made to Arriva's expansion and success by Arriva's employees and believes that a combination of Deutsche Bahn and Arriva will provide attractive opportunities for Arriva employees. In addition, the existing rights of the employees of Arriva will be fully safeguarded.

 

[WatcherZero]

Whats the breakdown of Arriva shareholders? If their institutional Im sure they will back it but if theirs 10% or more voting against they could block the takeover, especielly if they believe SNCF or a rival might make another offer.

 

[mumrar]

http://news.bbc.co.uk/1/hi/business/8636503.stm


Ill be interested to see who is put in charge of The All Wales Franchise
after the baggage as been cleared out of Pentaith House, a small part
of the deal, ATW or DBW need to install professionals in Cardiff HQ urgently.

Never miss a chance to have a go eh? The people in Cardiff, despite your criticisms, will be professionals. I doubt DB have earmarked £1.6bn whilst saying to themselves "finally Cardiff shall become a force to be reckoned with". Your unadultered criticism and undying love affair with WSMR only serve to undermine anything worthy that you say.

 

[gordonthemoron]

Since DB will own ATW and WSMR, does this mean that through trains from Aberystwth to Marylebone may now be a possibilty?

 

[bengley]

Since DB will own ATW and WSMR, does this mean that through trains from Aberystwth to Marylebone may now be a possibilty?

Good point

 

[anthony263]

Since DB will own ATW and WSMR, does this mean that through trains from Aberystwth to Marylebone may now be a possibilty?

It could be and if chiltern dont wont to use a class 158, then maybe they could use some of the MK3's to run with a 67 to Shrewsbury and maybe get a class 97 to haul the train between Shrewsbury & Aberystwyth or the only other option would be to either fit the class 67's or the class 168's with the ETRMS system to allow them to run on the cambrian

 

[merlodlliw]

Never miss a chance to have a go eh? The people in Cardiff, despite your criticisms, will be professionals. I doubt DB have earmarked £1.6bn whilst saying to themselves "finally Cardiff shall become a force to be reckoned with". Your unadultered criticism and undying love affair with WSMR only serve to undermine anything worthy that you say.

1, I have never mentioned W/S once on this thread, you have

2.If the senior management at ATW Cardiff are professionals,then they have not acted in that manner.

3.I have yet to meet an ATW employee with a good word to say about its senior management.

 

[WatcherZero]

What are the rules on seperation of franchises? Im sure you cant just transfer cash or assets from one to another.

 

[merlodlliw]

Since DB will own ATW and WSMR, does this mean that through trains from Aberystwth to Marylebone may now be a possibilty?

In my opinion this will not happen, the reason for ORR refusing the service was due to ATW exaggerating figures( The Minister's words), with its new owners a more pressing hourly service may well be the key objective.

 

[The Planner]

It could be and if chiltern dont wont to use a class 158, then maybe they could use some of the MK3's to run with a 67 to Shrewsbury and maybe get a class 97 to haul the train between Shrewsbury & Aberystwyth or the only other option would be to either fit the class 67's or the class 168's with the ETRMS system to allow them to run on the cambrian

WSMR wont get to Aber, if the ORR said no to ATW running to Marylebone, why would they say yes to WSMR basically doing the same thing ?? Anyway, you would need 67s cleared and ERTMS fitted as you would with 168s, not going to happen....

 

[Turbostar]

I take it then XC will basically become DB CrossCountry, & might possibly see livery changed in the long run to DB's corporate white with red lining on XC trains then???

 

[bengley]

I take it then XC will basically become DB CrossCountry, & might possibly see livery changed in the long run to DB's corporate white with red lining on XC trains then???

I doubt it, XC is not branded as an arriva service, it'd make much more sense to leave it be.

 

[gordonthemoron]

I take it then XC will basically become DB CrossCountry, & might possibly see livery changed in the long run to DB's corporate white with red lining on XC trains then???

I hope not, white diesel trains are not a good idea

 

[jopsuk]

I take it then XC will basically become DB CrossCountry, & might possibly see livery changed in the long run to DB's corporate white with red lining on XC trains then???

If they were to re-brand, perhaps they might do the Voyagers (misguided as it may be) in InterCity white and the Turbostars in regional/local red? Other ToCs (or, at least, Stagecoach ones) don't have a problem with having multiple liveries.

 

[KiddyKid]

I work for Chiltern Railways and up until now have not seen much involvement by DB. We had a few visits by DB staff initially, mainly to see how we operate and discuss best practice but the day to day running remains in the hands of Adrian Shooter and his team. I belive Mr Shooter is the MD of DB Regio UK so he may have some influence over the future of Arriva, not a bad thing me thinks!!

 

[tbtc]

I take it then XC will basically become DB CrossCountry, & might possibly see livery changed in the long run to DB's corporate white with red lining on XC trains then???

We don't have DB Chiltern (etc); you wouldn't know about the German influence on their other lines, so I doubt they'd do this here (especially midway through a franchise)

 

[merlodlliw]

We don't have DB Chiltern (etc); you wouldn't know about the German influence on their other lines, so I doubt they'd do this here (especially midway through a franchise)

Correct, however the Welsh Franchise will be re branded to get rid of Arriva with a cosy name approved by Wag. Even though DB will own the name I can not see
Arriva Trains Wales brand kept. DB trains Wales / Trenau DB Cymru perhaps.

 

[tbtc]

Correct, however the Welsh Franchise will be re branded to get rid of Arriva
with a cosy name approved by Wag. Even though DB will own the name I can not see
Arriva Trains Wales brand kept.

The Arriva name will probably be dropped, but don't expect to see new liveries, refurbished stock or new trains.

"Wales & Borders" is half way through a "no growth" franchise; they'd be daft if they were throwing money on the franchise

 

[fairlie]

Walische Bahn/Rheilffordd Cymreig, surely?

 

[merlodlliw]

The Arriva name will probably be dropped, but don't expect to see new liveries, refurbished stock or new trains.

"Wales & Borders" is half way through a "no growth" franchise; they'd be daft if they were throwing money on the franchise

Yes but if DB want to keep the franchise, unlike Arriva, they would be wise to
show some initiative.

As for new trains etc, I agree with you

 

[Greenback]

It may be that DB won't want the franchise, they may not think it lucrative enough!

 

[jopsuk]

Maybe now is the oppertune for the WAG to initiate similar branding to ScotRail?

If they don't, or even if they do, perhaps now might also be the time that DB decide to go for branding their operations here (including Chiltern). It represents a major leap in their operations here. Be a big order for red paint if the go for both Chiltern and All Wales though!

 

[Techniquest]

I hope not, white diesel trains are not a good idea

Quite so. Already livery froth has begun everywhere, even though Arriva shareholders have still to vote in favour of this takeover.

I'd be pleasantly shocked to see anything vastly improved on either of Arriva's franchises. Although from what I've read elsewhere, this is unlikely.

 

[Greenback]

Maybe now is the oppertune for the WAG to initiate similar branding to ScotRail?

If they don't, or even if they do, perhaps now might also be the time that DB decide to go for branding their operations here (including Chiltern). It represents a major leap in their operations here. Be a big order for red paint if the go for both Chiltern and All Wales though!

I was thinking the same thing!

 

[Techniquest]

Red vinyls, surely? Would take forever to paint all of that motive power in a red livery, particularly for the Welsh franchise!