Tag: Germany

Deutsche Post AG said it is redeeming the three-year exchangeable bonds it issued in 2004, by allowing bondholders to exchange them for Deutsche Postbank AG shares one year before the issue matures in July 2007.

In a statement, the post office group said bondholders can exercise their right to exchange the bonds for Postbank shares from July 3-23 this year. Once all the bonds are exchanged for Postbank shares, the banking unit’s free float will increase to 49.9 pct from the present 33.3 pct, while Deutsche Post’s stake in the unit will be reduced to about 50.1 pct.

Deutsche Post AG could raise its mailing rates by an average of 0.2 pct in January, the Frankfurter Allgemeine Zeitung reported citing a company spokesman. However, the spokesman said that Deutsche Post had not come to any final decision on the matter. ‘Nothing has been decided yet,’ he told the newspaper. The German government determines mailing rates through a calculation that compares overall consumer prices with productivity increases within the industry. Should Deutsche Post go ahead with the price increase, it would mark the first price increase in four years.