The Austrian government will float a 49 per cent stake in the country’s post office, it wasannounced on Wednesday. The decision, due to be confirmed at a cabinet meeting on Thursday, has
sparked protests from opposition parties and unions.The move follows months of controversial debate in Austria over the planned privatisation andcomes ahead of a general election due in autumn 2006. No timing has yet been officially set but thegovernment has previously favoured a spring IPO and a date in the first half of 2006 is likely.
Austrian finance minister Karl-Heinz Grasser announced that the state holding company ÖIAG wouldbe authorised to sell up to 49 per cent of Austrian Post, leaving 51 per cent in state control. Theflotation would strengthen the post office in an increasingly liberalised postal market environmentand give it new growth opportunities both in Austria and Europe, he said.
The Austrian deputy premier and transport minister Hubert Gorbach, who is responsible for thepostal sector, said the IPO would benefit all concerned, and predicted that the Austrian Post stockwould become a “people’s share”. “The Austrian people will become the direct owners of their postoffice and will have a share of the company’s profits through the dividends,” Gorbach stated. “Forinvestors, now is just the right timing since there is still sufficient time until liberalisationof the postal market – in 2009 at the earliest – and the operating environment is thus secure. Andwe should not forget the Eastern (Europe) potential of Austrian Post following EU enlargement,” headded. Gorbach called on postal unions not to oppose the IPO through politically-motivated strikesbut to see the opportunities for secure jobs.
The opposition Social Democratic Party (SPÖ) and various trade union organisations, however,warned that the IPO was a risky move given that the post office was still undergoing restructuring.The SPÖ launched a “hands off the post office” campaign while the postal union threatened strikeaction in protest at the plans.
Over the last few years, the Austrian Post has successfully restructured, improved itsprofitability and launched a growth strategy in the postal, parcels and logistics sectors based onselective acquisitions and partnerships. Its focus lies on Central and Eastern Europe.
