FRANKFURT (Reuters) – German railway operator Deutsche Bahn has picked Deutsche Bank and Citi as advisors on its potential sale or flotation of British unit Arriva, people close to the matter said on Thursday.

FILE PHOTO: A locomotive engine of German railway Deutsche Bahn is seen at the main train station in Frankfurt, Germany, March 27, 2019. REUTERS/Kai Pfaffenbach/Firle Photo

Deutsche Bahn said last week it was exploring the sale of Arriva – expected to be valued at more than 3 billion euros ($3.37 billion) – adding this would enable the group to lower its debt pile.

Deutsche Bahn and the banks declined to comment.

Deutsche Bahn has come under pressure to plug a funding gap and has said that a sale or listing could help