Deutsche Post Criticizes Deutsche Bank Over IPO

The head of Deutsche Post, Europe's largest postal service, has indirectly criticized Deutsche Bank for playing a role in the delay of its banking subsidiary Postbank's initial public offering (IPO). An internal Deutsche Bank document valuing Postbank at a price lower than being promoted was leaked to the press and potential investors. The study valued the German postal bank at €4.4-5.3 billion ($5.3-6.4 billion), well down on the €6 billion Deutsche Post had hoped for. The IPO, billed as the biggest listing in Germany since Deutsche Post itself went public almost three years ago, has generated just a lukewarm response with investors urging the semi-privatized postal monopoly to lower its price range. The flotation will now take place on Wednesday instead of Monday.