Germany´s TUI Sells Off Rail Freight Unit

TUI, the German tourism group, sold its rail freight business this week to a Franco-US private equity firm for an undisclosed figure that´s expected to be in the neighborhood of euros 500 million to euros 800 million ($614 million to $982 million).

However, the deal sparked controversy in Germany over the alleged hidden involvement of SNCF, France´s state railway operator.

Allegations that SNCF was behind the purchase of VTG, Europe´s leading rail container leasing company, were rejected by IPE-Ross, the private equity partnership between Wilbur Ross, the veteran US distressed-asset investor, and Philippe Nguyen, the French buy-out specialist.