Deutsche Post favourite for Austrian deal
Deutsche Post has emerged as the front-runner to acquire a majority stake in Austria’s post office in a move that would help the German postal and logistics supplier expand its planned pan-European mail network.
Austrian officials said Deutsche Post stood a better chance than its Swedish, Swiss and French competitors to win the offer as it seemed keen to integrate the Austrian post office into its European growth plans. Common language was another factor, they said. The Austrian parliament is expected next week to give the formal go-ahead to privatise up to 75 per cent of the Austrian post office, ÖIAG.
ÖIAG said the company had held informal talks with “other comparable companies”. Bankers value the entire Austrian post office at €900m-€1bn ($980m-$1.1bn).
Following a €5bn acquisition spree focusing on parcel and logistics activities, Deutsche Post has pledged to create a pan-European mail delivery network ahead of the full liberalisation of the European letter market later in the decade. It is already talking to the soon-to-be privatised Danish post office operator about buying 25 per cent and has expressed interest in the privatisation of the Belgian post office.
Separately, Deutsche Post said its 2002 operating profit declined about 5 per cent to €2.4bn, slightly above its own forecasts of €2.2bn. Sales rose 18 per cent to just under €40bn, in line with its own estimate.
The postal operator said it would raise its dividend by 8 per cent to €0.40 per share. Deutsche Post’s shareholders have seen the value of their shares more than halve since Deutsche Post went public in late 2000 at €21 per share. The shares closed down 1.6 per cent on Tuesday to €9.17.
“In a weak economic environment we have once again achieved good results,” Klaus Zumwinkel, Deutsche Post’s chief executive, said.
