German Postbank jumps as Deutsche Post signals it may sell
Deutsche Postbank AG, Germany’s biggest consumer bank by clients, rose the most since its initial public offering after parent company Deutsche Post AG said it may look at the lender’s future next year.
The stock surged 5.60 euros, or 13 percent, to 59.54 euros in the biggest gain since the bank sold shares to the public in June 2004. The Bonn-based company’s market value rose to 8.12 billion euros ($11.9 billion).
Deutsche Post Chief Executive Officer Klaus Zumwinkel, answering a question at a Frankfurt analysts conference, said that after Germany’s mail market is liberalized in 2008, there will be “more time to think about” Postbank’s future. Deutsche Post is “the best owner” of the bank at the moment, Zumwinkel said, adding that the unit has attracted interest from a number of banks. He later reiterated that Postbank isn’t up for sale.
Postbank today also said third-quarter profit almost tripled as the sale of its insurance business offset a 61 million-euro writedown on U.S. subprime-related investments. Chief Financial Officer Marc Hess said the bank is confident that the amount is sufficient to cover risks from securities linked to loans for U.S. homebuyers with patchy credit histories.
Postbank stock has declined 23 percent this year, the second-worst performance on Germany’s benchmark DAX Index. Deutsche Post holds 50 percent plus 1 share of Postbank.
