Deutsche To Buy Porterbrook – report

Deutsche Bank AG, Lloyds TSB and BNP Paribas have agreed to purchase Porterbrook, the train leasing arm of the UK bank Abbey, for $3.1 billion (2 billion pounds).

(Reuters) – British bank Abbey, owned by Spain’s Banco Santander, is set to sell its train-leasing arm Porterbrook to Deutsche Bank for 2 billion pounds ($3.1 billion), The Sunday Times reported.

Analysts said Porterbrook, which has a 5,500-vehicle fleet including electric and diesel locomotives, high speed trains and freight wagons, could be sold to bolster Santander’s capital base, according to the newspaper.

Abbey declined to comment on the report.

Another train-leasing firm, HSBC Rail, could be sold for a similar sum after HSBC appointed two sets of advisors to auction it, the newspaper said.

Sources at the bank, however, told the newspaper that no decision had been taken on a sale.

(Reporting by Paul Sandle; editing by Sue Thomas)