DHL to provide parcel service for Osterreichische Post

Osterreichische Post, the Austrian postal service operator, is reported by a press source to be planning to end its contract with the Austrian parcel forwarder Direct Parcel Distribution (DPD), and to award the contract for parcel forwarding in Austria to DHL, a subsidiary of the German postal service operator Deutsche Post. The Deutsche Post subsidiary already carries out forwarding abroad for the Austrian state postal operator. Deutsche Post is believed to be interested in participating in the privatisation of Osterreichische Post, which is expected to take place in the medium-term future. Owing to the current value of the Austrian postal operator, estimated at 500m euros compared with the 1.5bn euros targeted by the state, and to resistance on the part of employees, privatisation is not expected to take place in the immediate future.