German Deutsche Post set for logistics spending binge

Deutsche Post World Net plans a multi-billion dollar logistics spending spree beginning next month using the proceeds from the stock offering of its banking unit. The German mail, express delivery and logistics group, confirmed it will list up to 49.9 percent of Postbank, the country’s largest bank, on the Frankfurt stock exchange on June 21.

Deutsche Post said it will use the expected 3 billion euros (USD3.6 billion) in proceeds, the largest in Germany in several years, to improve the group’s finances and fund investments, mostly in logistics and mail operations abroad. The company has already spent over $7 billion on acquisitions, including DHL, the global express delivery firm, Seattle-based Airborne, Air Express International, a U.S. air freight agency, and Danzas, one of Europe’s largest freight forwarders, in a bid to create a global network to rival United Parcel Service and FedEx Corp. The group generated 43 percent of its USD48 billion revenues in 2003 from overseas operations and plans to raise the figure to 50 percent.

Deutsche Post Chief Executive Klaus Zumwinkel said the company’s goal is to become “the number one” logistics company in the world in 2005.