The behind-the-scenes PR war between DSV and CVC Capital for DB Schenker looks set to come to a close, following a report that DSV is the preferred bidder.

The bid still must be approved by Deutsche Bahn’s supervisory board, which is thought to be on 18 September.

While some observers believe the deal will be rubber-stamped, DSV stock still stood up only +7% around midday thanks to the news, still below consensus estimates from analysts (Loadstar Premium‘s take on the proposed deal is here.)

Union ver.di, which had led protests outside DB Schenker’s offices this week, in a bid to favour the private equity (PE) bid from CVC, declined to a request for comment from The Loadstar. Ver.di has warned that some 5,300 jobs could be lost under a DSV takeover. But staff have doubts.

DSV’s letter to DB reportedly pledged to retain “important central functions of Schenker in Germany… including IT in Essen and Frankfurt.

“In addition, joint management teams consisting of executives from both companies are to be appointed for the new organisation. The integration approach will be based on the ‘best athlete for the job’ principle for all positions.”

DSV also acknowledged that while there will be job cuts in the medium term, but claimed it would create jobs in the longer term.

“In five years, more employees will be working for the combined organisation than today at Schenker and DSV – worldwide and in Germany.”

German media reported that overlaps between DSV and Schenker would likely mean some 1,600 to 1,900 job cuts, or 13%-15% of the full-time jobs in Germany. However, DSV has promised no cuts for at least two years after the deal closes.

Some sources at the German forwarder have questioned why ver.di has backed the private equity bid.

One forwarder said: “I don’t understand really why ver.di is backing PE. PE is known for being a tough owner, it won’t be soft on employees. Ver.di has made DSV look worse for the group – but I don’t buy it. I don’t trust the union’s calculations, especially when DSV’s bid is actually saying different numbers. Ver.di just seems to be doing CVC’s communications for it.”

One DBS employee agreed that while staff “love” the DBS brand, most employees happily jump from one forwarding company to another anyway. “There are always people going to DSV, or Maersk or wherever. And the decisive factor in forwarding is about scale – so there will be a chance and opportunity to create something special with DSV.”

Mostly, according to DBS staff, “everyone wants to know how this ends”.

“There was talk more than five years ago of DB Schenker being sold. It’s been rather a transparent process, which has been a bit peculiar for us, and it’s been a long process.”

CVC will no doubt spend the next days continuing to lobby. In a letter sent to DB’s board, and seen by The Loadstar, it said a deal with PE would be easier and faster to execute.

“CVC is a growth partner and will invest heavily… with the aim of an IPO in five years at the latest.

“With CVC, there are no lengthy antitrust proceedings, and the process can be completed quickly and safely. There is no threat of exhausting integration processes and employees and management can concentrate fully on the further development of the company.

“In the event of an acquisition by a competitor, experience has shown that a large number of customers will turn away. There is no risk of such a loss of customers and employees in the event of an acquisition by CVC, as we will continue to develop Schenker with existing structures, employees and customers.”

CVC Capital declined to comment.

DB Schenker, like other forwarders, has been through several iterations. Founded by Gottfried Schenker in 1872 in Vienna, it was acquired by the German railways in 1931. Then in 1991, west German state rail company Deutsche Bundesbahn (DBB) sold Schenker to Stinnes Logistics, and it became Schenker-Stinnes, which was bought by DB in 2002, becoming DB Schenker.