Berlin cuts its post office stake

3rd January 2005, Comments 0 comments

3 January 2005 , FRANKFURT - The German government is to reduce its stake in mail carrier Deutsche Post to 8 percent in a transaction that gives a federal bank, KfW, 48.5 percent of the stockmarket-listed logistics group. KfW confirmed on Monday the sale would go through this month. Berlin had been widely expected to force-march the privatisation of the former post office since it needs to reduce net public borrowing. Originally set up as a post-war reconstruction fund, KfW is regularly used by the govern

3 January 2005  

FRANKFURT - The German government is to reduce its stake in mail carrier Deutsche Post to 8 percent in a transaction that gives a federal bank, KfW, 48.5 percent of the stockmarket-listed logistics group.

KfW confirmed on Monday the sale would go through this month. Berlin had been widely expected to force-march the privatisation of the former post office since it needs to reduce net public borrowing.

Originally set up as a post-war reconstruction fund, KfW is regularly used by the government as a halfway house in privatisations, as it can wait till prices improve before passing the shares on to private buyers. Its assets do not count as state-owned.

A spokeswoman at KfW confirmed the price to be paid in this month's transaction would be EUR 1.7 billion. At present KfW owns 36.5 percent of Post, which has absorbed the DHL courier group into its overall brand, Deutsche Post World Net.

Berlin officials said KfW would also be acquiring some of Berlin's shares in the Deutsche Telekom phone group this year. The amount would be set once Berlin had determined how much it would receive in premature repayments of Russian sovereign debt.

The federal budget assumes income this year of EUR 10 billion by shifting state shares to KfW.

In December KfW acquired 3.3 percent of Telekom for 1.6 billion euros. In November it passed on Post stock worth EUR one billion to international investors when the stockmarket rallied.

DPA

Subject: German news

0 Comments To This Article