Postbank sale could take matter of weeks: sources

Josef Ackermann, CEO of Germany's largest business bank, Deutsche Bank AG, smiles as he arrives for the annual news conference in Frankfurt, February 7, 2008.

FRANKFURT/DUESSELDORF (Reuters) - A sale of Deutsche Post AG's majority stake in Deutsche Postbank AG could take a matter of weeks once due diligence on the lender starts, two sources familiar with the matter said on Friday.

Post has received expressions of interest for Postbank that are clearly above its market value of 10 billion euros ($15.6 billion) and while no formal decision has yet been taken to sell Germany's biggest retail bank, a sale looks increasingly likely, the sources said.

Interested parties will soon be able to look at Postbank's books, the sources said. "Then choosing a buyer is only a matter of weeks," said one.

Commerzbank and Allianz are making a joint approach, but foreign financial players are also interested, the sources said.

Allianz is splitting its Dresdner Bank unit into two -- a retail bank and an investment bank Dresdner Kleinwort -- to be able to play a role in German banking consolidation.

A combination of Commerzbank, Dresdner and Postbank could create a German national champion to stand alongside the country's top lender Deutsche Bank AG.

The German government, as a major shareholder of Postbank's parent Deutsche Post, is leaning towards a domestic merger in any consolidation of the country's banks, government sources have said.

Deutsche Post and the banks all declined comment.

Postbank shares were up 1.4 percent at 63.91 euros by 0845, bucking a 0.7 percent drop in the DJ Stoxx index of European banking shares.

(Editing by David Holmes)