FRANKFURT, Sept 17, 2007 (AFP) - Three German states have raised objections to partial privatisation of the national railway, Deutsche Bahn, which could kill a deal that one regional minister said was 'on a knife edge.'

The regional transport ministers from eastern Saxony-Anhalt, northern Brandenburg and western North Rhine-Westphalia said they could block draft legislation in the upper house of parliament, the Bundesrat.

The bill is 'on a knife edge' said Karl-Heinz Daehre from Saxony-Anhalt as the ministers presented a report on behalf of the country's 16 states.