Deutsche Post World Net has confirmed it is in negotiations over the possible sale of its financialservices subsidiary Postbank in a deal that reportedly could be worth anything from €5 – 10
billion.Postbank, in which DPWN owns 50% plus one share, is the largest retail bank in Germany withmore than 14 million private consumers. Its current market capitalisation about €9.4 billion,although this is due to a strong share price rise in recent months driven by speculation over apossible sale.
DPWN announced yesterday that it has entered “a more intensive phase of the exploratoryprocess” concerning the future of Postbank and that “discussions between Deutsche Post andpotential partners are moving forward quickly and efficiently”. But no preliminary decisionregarding the various potential options has yet been taken, it said.
In addition, Postbank CEO Wolfgang Klein has temporarily stepped down from his position onthe DPWN management board with immediate effect. The move was agreed with DPWN CEO Frank Appel forreasons of good corporate governance, the postal group explained.
German media reported that various foreign banks, including ING, Lloyds TSB, BNP Paribas,Fortis and Spain’s Santander Bank are potential buyers, along with Deutsche Bank and Germany’sCommerzbank and Dresdner Bank, which are considering a merger and joint bid.
Observers and analysts have speculated that the sale price could lie in the €5 – 10 billionrange, although this is highly dependent on market conditions. DPWN could use the proceeds for aspecial dividend payment, a share buyback programme or other measures.
