Deutsche Post World Net (DPWN) is poised to sell a major stake in its financial servicesbusiness, Postbank, to Deutsche Bank in a transaction likely to be worth several billion euros. The
deal would leave DPWN focused on the postal and logistics markets.DPWN has said repeatedly in recent months that it is ready to dispose of Postbank but would notbe rushed into a deal that would under-value the bank. Postbank is Germany’s largest retail bankwith some 14 million customers.
DPWN yesterday issued a short statement saying: “Deutsche Post confirms advanced discussionswith Deutsche Bank regarding a potential sale of a stake in Deutsche Postbank. The outcome of thesediscussions is not yet finalised.” Deutsche Bank issued a nearly identically worded statementconfirming the talks.
German media reported that negotiations centre on Deutsche Post, which owns a 50% plus one sharemajority stake in Postbank, initially selling a stake of 29.75% to Deutsche Bank, which would alsogain the right to buy the remaining shares at a later date, possibly over a two-year period.
The Deutsche Post supervisory board is scheduled to meet on Friday and could approve thetransaction, according to media reports. Postbank is currently valued at about €7.3 billion, basedon its market capitalisation, thus valuing the reported stake at about €2.2 billion.
Deutsche Bank CEO Josef Ackermann commented at a banking conference on Wednesday: “There’s nodoubt that Postbank would fit our strategy but it depends on the price.” Postbank’s shares havefallen steadily in recent months, making it a cheaper acquisition than earlier this year.
An acquisition would strengthen Deutsche Bank while intensifying consolidation of the Germanbanking sector following the recent agreement for Commerzbank to buy Dresdner Bank.
