Germany has no plans now to hand Telekom, Deutsche Post shares to KfW

The German government currently has no plans to transfer

further shares in Deutsche Telekom AG and Deutsche Post World Net AG to KfW

Bankengruppe, sources said.

However, if required, the government may sell some shares later on this year, sources told dpa-AFX news agency.

The last such transaction was in January, when KfW bought a 12.7 pct stake

in Deutsche Post World Net AG from the government for 1.7 bln eur, raising its

total stake to 48.8 pct.

But the planned sale of some pension fund receivables of former post-office

monopoly Deutsche Post’s successor companies will likely be completed during the

current quarter. Talks are currently ongoing about the modalities of the sale, the sources said.

The finance ministry in November said the government hopes to raise 5.5 bln eur from this sale. The pension fund sales involve transfers by Deutsche Post

World Net and Deutsche Telekom, which are the successor companies to Deutsche

Post.

The German government is hoping for revenues of 5.5 bln eur that will flow

into the 2005 budget to help plug an extra 10 bln eur in its 2005 budget

deficit.