Austrian Post Office may be privatized, says holding company

The Austrian Post Office may be partially privatized in just over one year’s time, said the holding company for state industry OEIAG on Monday.

OEIAG supervisory board chief Alfred Heinzel said in the newspaper Die Presse that up to 49 per cent of the Post Office could be sold on the stock exchange around May 2006. “Intensive work” was already being done for this, he said.

There were two alternative plans. Fristly, between 25 and 49 per cent could be sold on the stock exchange, or secondly, 25 per cent could be sold to a strategic partner, and 24 per cent on the stock exchange.

He did not say who would be the best strategic partner, but sources recently said the German Post Office would be an ideal choice.

Just a few months ago, directors Peter Michaelis and Rainer Wieltsch of the 100 per cent owner OEIAG said the Post Office faced tough savings, but there was no question of privatization, or getting a strategic partner for the time being.

Austria is not the only country with stock exchange plans for its post office. Already quoted on the stock exchange are the German and Netherlands ones – the latter the only European one majority-held by private owners.

Belgium, Italy and Poland have plans to privatize their post offices via the stock exchange.

Last May already, reports said the Dutch and German Post Offices were keen to buy into their Austrian counterpart. On its side, it wanted fresh funds in order to form a new alliance and expand into Eastern Europe.

However, any such sale may not go smoothly. The Postal Workers Union adamently opposes major privatization and has threatened strikes.

In April 2004 the Post Office said it would cut down 1,000 jobs this year at the same time as expanding its activities in East and South-East Europe. Staff costs in Austria would be reduced by 50 million euros to 950 million. (Schluss) qu