Deutsche Post Not Likely to Hurt U.S. Carriers
LONDON — While Deutsche Post (DPW-FRK), the German postal service, burst into the world of privatization with a $5.6 billion initial public offering last week, some observers say American carriers and international logistics companies do not have much to fear from the competition.
Shares were initially issued for $17.84. Early selling saw the price fall slightly, but the stock rebounded to over $18 per share by the end of the first day of trading to give Deutsche Post a market capitalization over $20 billion.
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They believe the greater reporting requirements and the need to answer to investors could actually work against Deutsche Post. Its main competitors are United Parcel Service (UPS), FedEx Corp. (FDX) and the former Dutch post office TNT Post Group (TP).
The German government sold 278 million shares in Europe’s biggest postal services company Nov. 20. But the demand for shares was eight times more than the amount available.
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