Hermes Logistics Group – Making Inroads into Austria
Hermes Logistics Group – Making Inroads into Austria
Read MoreTag: Germany
Sale of KfW's Deutsche Post Stake 'Very Unlikely'
The state-owned Kreditanstalt fuer Wiederaufbau (KfW) bank would be unlikely to sell the appx 30.1 pct stake it holds in Deutsche Post AG to The Children’s Investment Fund (TCI), financial sources close to the matter said.
‘The freeze period on the (sale of) KFW’s stake is due to end soon and this would set up the possibility of a sale of the stake, but the chances KFW would get the go-ahead from the government to do this would be extremely unlikely,’ the source said.
KfW said late last year that it was looking at the possibility of selling some of the shares it holds in Deutsche Post and Deutsche Telekom AG in 2007.
Shares in Deutsche Post had climbed by around 4.8 pct higher by midday, on speculation that TCI was willing to bid 30.25 eur per share to acquire between a 25-30 pct stake in the postal carrier.
A spokesman for Deutsche Post said the speculation is ‘the usual Post rumour’ and added there is nothing new to report from the company on the matter.
‘Business as usual,’ he said.
Germany struggles to open up its mail delivery market
The German government agreed to end the letter delivery monopoly of Deutsche Post as planned, but the issue is still a thorn in the eyes of the grand coalition.
Christian Democrats (CDU) and their Social Democratic (SPD) coalition partners agreed to liberalize Germany’s mail delivery market as part of European Union moves to deregulate postal services across the 27-member bloc.
Starting Jan 1, 2008, letters weighing up to 50 grams (1.8 ounces) will no longer be the monopoly of Deutsche Post, the world’s biggest post and logistics group.
According to government sources, Chancellor Angela Merkel and head of Social Democrats (SPD) Kurt Beck reached an agreement on Tuesday evening.
The SPD had previously sought to extend the monopoly beyond the deadline, partly because other EU member states will have to open up their mail service markets in 2009.
A spokesperson for the ministry of finance said late on Tuesday evening that the Social Democrats remained convinced that the deregulation of the post service in Germany ought to take place only in concert with other European countries to make sure Deutsche Post doesn’t suffer unfair competition.
With the countdown underway to the end of its letter monopoly, Deutsche Post has been moving to diversify away from its dependence on its German operations and is hoping that its international businesses will help to offset the pressure on earnings in its domestic market.
Deutsche Post chief Klaus Zumwinkel, however, warned last week that the opening up of the letter delivery service could endanger up to 32,000 jobs.
Read MorePostbank not in merger talks, parent Deutsche Post not selling shares
Deutsche Postbank AG is not in merger talks with Deutsche Bank AG, Postbank chief executive Wulf von Schimmelmann told weekly Wirtschaftswoche when asked about ongoing takeover speculation.
There are no signals whatsoever that majority shareholder Deutsche Post AG is planning to reduce its stake in Postbank, he said.
‘I am certain that Postbank can increase its value more effectively if it remains independent,’ said von Schimmelmann, who is to be succeeded as CEO by current management board member Wolfgang Klein in July.
Deutsche Post currently holds 50 pct plus one share in Postbank.
Read MoreDeutsche Post monopoly may be extended beyond this year
The German government is showing signs of ‘relative openness’ to the possible extension of Deutsche Post World Net AG’s incumbent mail delivery monopoly beyond December, daily Handelsblatt wrote, citing a government representative.
The liberalisation, which was initially planned for Jan 1 2008, may be delayed if Germany cannot convince the other EU member states to open their mail markets as well, the report added.
Deutsche Post’s virtual monopoly on letter delivery for letters up to 50 grams is earmarked to expire at the start of 2008, with the EU seeking a continent-wide liberalisation of the market in 2009.
Thus far, eleven member states are questioning whether they will liberalise their markets even in 2009, the newspaper said.
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