Deutsche Post to redeem bond exchangeable into Postbank shares before maturity06/30/2006, 01:00 AM CEST
As a result of the positive performance of the Postbank share, Deutsche Post AG will exercise the option provided to the bond issuer and redeem its exchangeable bond on Postbank shares before maturity on July 3, 2006. The Postbank share has fulfilled all the necessary conditions as its closing price on all trading days since May 12, 2006 was above the level of 48.80 euros. Bondholders can exercise the right to exchange the bond into Postbank shares through July 23, 2006. After this transaction, Deutsche Post's stake in Postbank will be about 50.1 percent.
Calling the exchangeable bond before maturity enables Deutsche Post to reduce itsnet financial debt by around 1 billion euros this year.