Deutsche Post shares transfer agreed

The German government and the state-owned Kreditanstalt fuer Wiederaufbau (KfW) have agreed on the conditions for the transfer of about 5.5 bln eur worth of government-owned shares in Deutsche Telekom AG and Deutsche Post World Net AG to KfW, according to German finance ministry officials.

They said the agreement is expected to be signed today or tomorrow.

Under the agreement, the government will “park” its directly-owned shares in KfW, which will then privatise it at some point in time when market conditions are suitable.

KfW will pay the government the 5.5 bln eur worth of shares to be transferred this year and once the actual share placement is made on the private market, KfW will transfer the balance to the state.

Under the government’s 2003 budget which was approved by Parliament last year, about 5.5 bln eur worth of shares will be privatised by the government through the “park solution” with KfW.