Dutch & Germans Ready to Buy Into Austria Post

The Dutch and German Post Offices are keen to buy into their Austrian counterpart and may do so next month, said press reports on Thursday. The first step would be at a forthcoming supervisory board meeting of the Austrian holding company for state industry (OEIAG), when it was expected to decide on a public offer of 25 per cent plus one share – a blocking minority – of the Austrian Post Office. The reports said the Dutch and Germans both considered the Austrian Post Office an attractive proposition. On its side, it was keen for fresh funds in order to form a new alliance and expand into Eastern Europe. The newspaper Die Presse said that the Austrian Post Office wanted to find a new partner by early 2005. The best offer was expected to come from its German counterpart, which was said to be more keen to expand than the Dutch. However, the sale may not go smoothly. The Postal Workers Union adamantly opposes major privatization and has already threatened strikes. Last month the Austrian Post Office said it would cut down 1,000 jobs in its own country this year at the same time as expanding its activities in East and South-East Europe. Staff costs would be reduced by 50 million euros to 950 million. At the same time the Post Office was considering takeovers in the Czech Republic, Hungary, Romania and Bulgaria. Involvement in Croatia, Slovenia and Slovakia would be expanded as well. Last year the Post Office already reduced 2,000 of its 29,000 staff. There was a protest work-to-rule by postmen in March 2003. Two months later, reports said the Post Office would reduce staff by as much as 6,000 by 2006, meaning there would be nearly 10,000 fewer postal workers than in 1999.