Deutsche Post CEO says in no rush on Postbank

Postbank owner, Deutsche Post, is in no hurry to reach a decision on a possible sale of the German retail bank, Chief Executive Frank Appel told Reuters in an interview.

‘I don’t feel any rush or haste. I will decide according to what is best for Deutsche Post, but also for Postbank,’ Appel said on Saturday during a trip to China with German Foreign Minister Frank-Walter Steinmeier.

Postbank, the country’s biggest retail bank, is up for sale and its owner has invited expressions of interest. Sources familiar with the matter told Reuters last week that if offers are good enough, Deutsche Post will push ahead with a sale within weeks.

Deutsche Bank has flagged interest in Postbank, as have Allianz and Commerzbank, which are making a joint approach. They would plan to swallow Postbank into a newly created group that would include Allianz’s Dresdner Bank.

Asked about the possibilities on the table for Postbank, Appel said: ‘We are sounding out options and are not participating in any speculation.’

Appel was participating in a three-day trip with Steinmeier to China, where Deutsche Post’s delivery arm DHL express is moving to strengthen its foothold in the fast-growing market.

Appel said growth would remain at a strong level. ‘The growth rate will decrease, but it will remain in the double-digit area … Whether we’ll have growth of 20, 30 or 40 percent is hard to say but we’ll be in the double-digit area.’

DHL Express, along with rivals FedEx Corp and United Parcel Service, is increasingly focusing on Asia, and China in particular, where rocketing global trade is driving demand for freight and logistics services.

DHL Express currently controls roughly 40 percent of the international express delivery market in China, analysts say.

‘What is being mentioned isn’t totally wrong,’ Appel said, adding he saw no essential need to expand the company’s market share in the crossborder express business.

‘But we are working on increasing our market share in other areas, such as storage business and air and sea freight. This is where we want to strengthen our presence.’

Appel also said he was confident a USD 175 million air hub the company is building in Shanghai will be finished as planned in 2010.

Appel, who studied chemistry and has a PhD in neurobiology, took over as Deutsche Post’s chief executive in February, pledging to focus on Postbank and the loss-making US business.

Deutsche Post is battling to stem losses at DHL Express in the United States as the economy weakens and in the face of tough competition from domestic players FedEx and UPS.