Postbank drops the most in trading with concerns over sale (GER)
Deutsche Postbank AG dropped the most in six months in Frankfurt trading on concern the company’s sale may be delayed.
Bonn-based Postbank declined 3.68 euros, or 7.3 percent, to 46.77 euros. The stock fell as much as 9.9 percent earlier in the day, the biggest drop since the initial public offering in June 2004, valuing the bank at 7.67 billion euros (USD 12.2 billion).
“In order to receive a satisfying price, we would consider it rational for Deutsche Post to postpone the selling process without a feasible German buyer right now,” Carsten Werle, a Frankfurt-based analyst at Sal. Oppenheim, wrote to investors. He lowered his recommendation on the stock to “reduce” from “buy.”
Deutsche Bank AG, a likely buyer, faces “unreasonable economic terms” in the current environment to raise financing for the acquisition, Werle said. A takeover of Postbank and the high cost would dilute Deutsche Bank earning by as much as 22 percent, Werle estimates. Deutsche Post, Europe’s biggest postal service, said on June 25 it is holding “exploratory” talks about a sale of its majority stake in Postbank.
