Deutsche Post DHL has not made a bid for a stake in Royal Mail, CEO Frank Appel confirmed today.The German group has no strategic plans for large-scale domestic mail operations in Europe and will
only invest “cautiously” in “attractive opportunities”.Speaking at the company’s Capital Markets Day in Frankfurt, Appel referred to UK and Germanmedia reports saying that the company had pulled out of the bidding for a minority 30% stake. “Wecan confirm that we have not done that,” he said. Some analysts had been “deeply concerned” about apotential investment in the UK postal operator, he noted.
International media had previously cited sources close to Royal Mail as saying that theGerman group had not met the deadline for making a bid. British business secretary Peter Mandelsonsaid early last month that he expected initial bids to be made during April. This leaves TNT andprivate equity company CVC as the final two bidders in the controversial part-privatisation ofRoyal Mail.
In response to an analyst’s question, Appel refused to comment on reports of talks overpotential interest in Austrian Post. “I will not comment on Austrian Post, neither yes nor no,” hestated. Austrian state holding company ÖIAG, which owns the majority 51% stake in partly-privatisedAustrian Post, already denied a magazine report which claimed that its chairman had approachedDeutsche Post about the potential sale of a 25% stake in Austrian Post.
Referring to Deutsche Post DHL’s overall strategy for its international mail activities,Appel said that the group is already the international market leader for cross-border mail throughDHL Global Mail. But it will take a very cautious approach to expanding into other domestic mailmarkets in Europe, he stressed.
“There is no strategic need to expand our domestic mail businesses into foreign markets,”Appel said. Experience had shown that foreign domestic operations were very difficult and therewere very limited synergies between countries.
But at the same time, Deutsche Post DHL will remain open for selective low-risk marketentries and would not want to miss out on “attractive opportunities”, Appel added. “If we findfinancially attractive ways to invest in foreign domestic markets, then we will consider it,” hecommented. “That’s the approach we want to take with foreign domestic markets.”
