Banking | 02.09.2008
Board Meeting to Decide Fate of German Postbank
There has been a lot of attention focused on German banks in the last few months. Now that Commerzbank has agreed to buy Dresdner Bank, a lot of people are wondering if Postbank will be the next to go up for sale.
Postbank, one of Germany's largest financial institutions, may soon follow Dresdner Bank onto the auction block. In a press report released on Tuesday, Sept. 2, the German logistics group Deutsche Post said it could decide by mid-September on the future of its banking subsidiary.
Unknown sources told the German daily Handelsblatt that the supervisory board of Deutsche Post will meet on Sept. 12. The logistics company owns 50 percent plus one share of Postbank, but has made it known that it would like to sell the unit, which has 14.5 million clients.
However, with the financial market being what it is, bidders are hard to come by. Deutsche Post has been discussing selling the daughter company since mid-June, but experts warned that it would probably not get the 10 billion euros ($14.6 billion) it sought, at least not in cash.
Georg Kanders, an analyst with the commercial bank WestLB told German DPA news agency that the Postbank is certainly an attractive company, but that the timing is bad for making a sale.
"If Deutsche Post is smart, they'll put their plans to sell on the back burner," he added.
Commerzbank, Germany’s second largest bank, had said it was interested in placing a bid. However, it announced over the weekend that it will buy the number three Dresdner Bank in a deal worth 9.8 billion euros. The number one financial institution in Germany, Deutsche Bank, could be a potential buyer if the board decides to go through with the sale.
