German rail on track of listing

City investors are being courted by German railway operator Deutsche Bahn as it prepares for a £5 billion stockmarket rollout later this year.

Investment firms in London, New York and Madrid are among those being asked to buy millions of shares in DB. This could be bad news for the British Government at a time when Olympics infrastructure costs and other major projects need all the home-grown help they can get.

Insiders worry that, with funds tight, any investment from the City that goes abroad is a blow to Britain as the economy teeters on the verge of recession.

DB said 24.9% of newly formed subsidiary DB Mobility Logistics, home to DB's passenger and logistics operations, would be listed. The state will have a 75.1% stake in the passenger and freight operations.

Company revenue rose 8.2% to €16.6 billion (£13.1 billion) in the six months to the end of June from a year earlier.