German Deutsche Post to continue with plans for flotation of Postbank

Deutsche Post, the German postal service, says that it intends to continue with its plans for a flotation of Postbank, its banking subsidiary, despite conflict with Deutsche Bank, the largest bank in Germany, which is to act as a lead bank in the transaction. Last week, Deutsche Post had been angered at a report produced by Deutsche Bank, in which the value of Postbank was estimated to be considerably lower than had previously been thought, at between 26.83 and 32.32 euros per share. According to reports, members of the management board of Deutsche Post had discussed the possibility of taking legal action against Deutsche Bank.

Now, however, Deutsche Post says that the only issue of importance is to ensure that Postbank is floated successfully. The company believes that this can be achieved with the aid of Deutsche Bank. Some fund managers are reported to have praised the bank for giving them an indication of the fair value of shares in Postbank, while others believe that the bank’s report is likely to lead to the cancellation of the plans for a flotation.