Deutsche Post mulls 1.5-bln-euro capital increase to buy Exel

0 Comments | AFP, September, 2005

FRANKFURT (AFP) — Deutsche Post, the semi-privatised German postal service, is planning a capital increase of more than 1.5 billion euros (1.9 billion dollars) to finance its acquisition of British logistics group Exel, the business daily Handelsblatt reported.

Bonn-based Deutsche Post is to use the issue of new shares to pay for about one third of the acquisition price, the newspaper said, quoting financial sources.

The Financial Times Deutschland quoted sources close to the talks as saying that shares would make up 30 percent of the purchase price, which would be paid in a combination of cash and shares.

Based on the assumption that the purchase price would be 5.3 billion euros, that meant that the volume of the capital increase would be between 1.59 and...