Benefit capped on Deutsche Bank share gain, says Appel

Deutsche Post’s upside from a rally in Deutsche Bank shares is limited, damping potential gain from the sale of its Deutsche Postbank unit, Deutsche Post CEO Frank Appel said.

Deutsche Post’s upside from a rally in Deutsche Bank shares is limited, damping potential gain from the sale of its Deutsche Postbank unit, Deutsche Post CEO Frank Appel said.

Deutsche Post received Deutsche Bank shares as part of the payment for selling its banking unit Deutsche Postbank. Deutsche Bank agreed to buy Postbank last year.

As part of that sale, Deutsche Post agreed with Deutsche Bank to limit potential profits from a rise in Deutsche Bank shares in exchange for protection against losses from a steep fall in the bank’s share price, Appel told journalists on 14 April.

As a result, Deutsche Post does not expect to realise a gain significantly above €4.9bn ($6.5bn) from the sale, Appel said.

Appel reiterated that Deutsche Post would sell its Deutsche Bank shares quickly and before year end. As part of the takeover agreement, Deutsche Post can sell part of its 8% stake in Deutsche Bank as early as the end of April, with the remainder from mid-June onward.

A sale to investor’s off-bourse was an option, he said.

Appel declined to comment specifically on whether Deutsche Post was interested in purchasing Royal Mail, but added, “there is no strategic necessity for us to make a large acquisition.”

It was generally difficult to gain a foothold in the overseas markets for delivering letters but Deutsche Post would not pass up good chances, Appel said.

“I am a businessman and believe that if a good opportunity presents itself one should grab it,” he added.