Rumours boost Deutsche Post share

Deutsche Post AG, the German postal service operator, has vehemently rejected rumours that its supervisory board may have decided in favour of the closure of around 1,000 branches and extensive job cuts, although the rumours had boosted the company’s share price by 7.26 per cent. Supervisory board vice-chairman Rolf Buttner, who is also a member of services sector union Ver.di, has said that that, at its last meeting, the supervisory board merely discussed a plan to improve efficiency, and that no concrete decisions were taken. Earlier this year, management had mentioned the possibility of job cuts and branch closures.

Details of the plan are to be announced on Thursday. It is estimated that the company is aiming to save a nine-figure sum, having examined possible synergies within the group. With effect from 2003, Deutsche Post will have to balance turnover losses of 300m euros arising from a compulsory reduction in postage charges.

Original article by Jorn Paterak

Abstracted from Financial Times Deutschland