JULY 6, 2002

Deutsche Post raises stake in DHL

JORDAN's sponsor Deutsche Post has raised its share in DHL to 75% by buying out Lufthansa, which owned 25% of the business, for $600m. The deal is part of Lufthansa's plan to divest itself of non-core businesses to try to keep the business healthy in the wake of the problems for the airline industry in the wake of September 11. The deal means that Deutsche Post will have less cash available than has previously been the case but will also mean that it is in the firm's interest to publicize the DHL activities still further.

Unfortunately, the deal comes just a few days after an accident in which a DHL plane was in collision with a passenger plane over Southern Germany.