Germany transfers more Deutsche Telekom, Deutsche Post shares to KFW

The German government has transferred some €5.5 billion ($6.3 billion) worth of shares in Deutsche Telekom and Deutsche post to the state-run reconstruction bank KfW, a KfW spokeswoman said.

The move, flagged back in July, will help Berlin replenish its coffers and also push ahead the ongoing privatisation of the telecommunications giant and the postal authority.

Following the transaction, KfW holds 16.7 percent of Deutsche Telekom, 26.1 percent remains in government hands and 57.2 percent is traded on the stock exchange.

In the case of Deutsche Post, KfW holds 48.3 percent, the state owns 20 percent and the free float is 31.7 percent, the KfW spokeswoman said.

State-owned KfW (Kreditanstalt fuer Wiederaufbau) is traditionally used by the government as a vehicle for privatisation.

The state “parks” shares with the bank which then sells them via the open market at a later date at a higher price.