* Sale part of government privatisation drive
* Germany's KfW places 60 mln Deutsche Post shares
* Sell shares for 15.40 euros each
* KfW taking advantage of recent stock rally
* Deutsche Post shares down 3 pct
(Adds details, background, analyst comment)
FRANKFURT, Sept 7 The German government has sold
a 5 percent stake in Deutsche Post for 924 million
euros ($1.17 billion) as it tries to raise billions of euros
from privatisations this year to offset the budget strain of the
euro zone crisis.
The placement, announced late on Thursday, will reduce the
German government's stake in Deutsche Post to 25.5 percent from
30.5 percent, and the holding is expected to shrink further when
a convertible bond matures in 2014.
State development bank KfW, which holds the German
government's stake in Deutsche Post, said on Friday it placed 60
million shares with institutional investors for 15.40 euros
That is slightly below the indicative price range of between
15.70 euros and the market price and represents a 3.6 percent
discount to Thursday's closing price of 15.98 euros.
The sale was run by Bank of America Merrill Lynch.
KfW is taking advantage of a rally in the share price of the
Bonn-based mail provider that has taken the stock to its highest
level in almost four years and given the company a market value
of 19 billion euros, according to Thomson Reuters data.
In the past three months, Deutsche Post shares have gained
"The timing of the transaction is excellent," DZ Bank
analyst Robert Czerwensky said, adding Deutsche Post was still
his top recommendation in the logistics sector for the medium to
The placement will also increase the proportion of freely
traded shares in the company to about 74.5 percent, making
Deutsche Post's shares more liquid.
The stock was down 3.19 percent at 15.46 euros at 0854 GMT
($1 = 0.7915 euros)
(Reporting By Matthias Inverardi, writing by Edward Taylor;
Editing by David Cowell)