German gov't sells further 7.3 pct in both Deutsche Post, Telekom

0 Comments | AFP, July, 2005

FRANKFURT (AFP) — The German government is continuing to sell off the family silver in an attempt to plug the holes in its public finances and is placing further shares in Deutsche Telekom and Deutsche Post with the state-owned KfW bank.

KfW, which the government traditionally uses as a privatisation vehicle, said that Berlin was selling stakes of 7.3 percent apiece in the telecommunications giant and the postal authority.

The government was placing a total 80.9 million Deutsche Post shares and a 307.8 million Deutsche Telekom shares with the KfW in two transactions worth a combined five billion euros (six billion dollars), the bank continued Monday in a statement.

When privatising state-owned companies, Berlin traditionally places shares with KfW, which in...