Deutsche Post boss defends Postbank IPO
7 June 2004FRANKFURT - Deutsche Post chief executive Klaus Zumwinkel went on the offensive Monday to defend the proposed price range for the IPO of banking unit Postbank, saying feedback had been positive.
7 June 2004
FRANKFURT - Deutsche Post chief executive Klaus Zumwinkel went on the offensive Monday to defend the proposed price range for the IPO of banking unit Postbank, saying feedback had been positive.
His comment came at a press conference the day after Deutsche Post surprised many analysts by setting a range of EUR 31.50 to EUR 36.50 per share in what is to be the biggest public offering in more than three years.
"The feedback is convincing us that the price range is the right one," Zumwinkel said.
The final issue price is to be determined just ahead of the scheduled 21 June launch of the Postbank shares. Bookbuilding on the 82 million shares got under way on Monday and runs until 18 June.
Deutsche Post will retain 50 percent plus one share of Postbank after the share placement.
Were the shares, amounting to 49.9 percent of Postbank, to be sold at the top price, the sale would generate EUR 2.99 billion, in line with the overall valuation of around EUR 6 billion which Zumwinkel has put on the bank.
Analysts have questioned whether the bank, which operates over the counters of Germany's former post offices, is really worth so much.
Zumwinkel's insistence that Deutsche Post had found the right price range for the offering comes after the recent controversy caused by the leaking of an internal Deutsche Bank paper which suggested that Postbank may be worth only EUR 4.4 billion in total. Deutsche Bank is the lead manager for the IPO.
The paper was leaked to the media, and many investors said they would seek a discount as a result.
Subject: German news