Deutsche Post in discussion with Austrian Post

German post and logistics group Deutsche Post has taken part in talks about the privatisation of the Austrian post office but political uncertainty in Austria means a deal is not imminent.

OeIAG, the Austrian agency in charge of privatising state holdings, confirmed there had been talks with Deutsche Post AG (DPWGn.DE) as well as with other postal services.

But discussions were still at an early stage because the Austrian cabinet had not yet issued the necessary mandate for privatising the state post. “Without the mandate and the EU-wide tender required under EU law, we cannot talk about things like what percentage of Post AG would be sold,” OeIAG spokeswoman Victoria Kickinger said.

A Deutsche Post spokesman declined to comment on a report in the Financial Times Deutschland that the company was keen on buying up to 75 percent of the Austrian post office, which it said was worth some 2-3 billion euros ($1.99-2.99 billion).

But the spokesman added that Deutsche Post was talking to the Austrian post office and others around Europe about possible co-operation. Like other former state postal monopolies, Deutsche Post is looking to expand outside its home market to prepare itself for the phased liberalisation of EU postal services.

It is already running trial mail services in Britain and is planning a joint venture in the Netherlands.

Its Austrian ambitions, however, have been thwarted for now by the political uncertainty arising from a snap general election last month. Austrian voters handed pro-privatisation Chancellor Wolfgang Schuessel a landslide victory. Schuessel has a three-way choice of coalition partner between the far-right Freedom Party, the Social Democrats and the environmentalist Greens.

Officials said it was unlikely the outgoing cabinet, which remains in a caretaker role, would issue a privatisation mandate in its last weeks.