Postbank IPO to net DPWN €3 billion
Deutsche Post has released more plans concerning the future of its banking subsidiary Postbank. It seems likely that an IPO, announced last year, will go ahead in June with a price range for the shares to be announced in about a month. However there is a possibility that another bank may take a stake in a private sale. Deutsche Bank has reportedly written to the German government expressing an interest.
The IPO is likely to raise Deutsche Post in the region of €3bn through the sale of just under 50% of shares. The money will be used to strengthen the company’s finances and for future investment, although nothing specific has been earmarked.
Separately, the company also stated that it still expects to achieve a 5-10% growth in operating profit in 2004 and said that it hopes to be the world’s number one logistics company by the end of 2005. There would be particularly strong growth in profits in its Express division.
The news that Deutsche Post will be raising a further €3bn to add to its seemingly limitless resources is worrying news for its competitors. This combined with a continued appetite for growth could mean that there will be further acquisitions on the cards, especially once its STAR integration programme is well under way.
