Float puts £15bn value on Deutsche Post

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Investors in seven European countries, including the UK, can apply for shares in Deutsche Post from today, after the company announced at the weekend it would price the shares at 18-23 euros (£10.40-£13.30) in a flotation that will value it at up to 25.7bn euros (£14.9bn).

Investors in seven European countries, including the UK, can apply for shares in Deutsche Post from today, after the company announced at the weekend it would price the shares at 18-23 euros (£10.40-£13.30) in a flotation that will value it at up to 25.7bn euros (£14.9bn).

The sale of a quarter of the equity in the state-owned postal service will turn it into Europe's biggest quoted logistics company, to be known as Deutsche Post World Net (DPWN).

The privatisation of Deutsche Post will put further pressure on the UK's Post Office, already facing increased competition from overseas. The Post Office last year bought German Parcel, the third-biggest private postal business in Germany, for £300m,and it has a 49 per cent stake in the Italian express parcel business Direzione Gruppo Executive.

However, Deutsche Post already owns Securicor Omega, the UK parcels service, and recently increased its controlling interest in DHL. The flotation is likely to signal further aggressive expansion into overseas markets by Europe's largest parcels company.

DPWN has indicated it could raise "several billions" of euros through the sale of non-core assets to fund acquisitions.

The shares are due to start trading on the Frankfurt Stock Exchange on 20 November.

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