Postbank IPO price draws cries

BERLIN, June 8 (UPI) -- German investors are expressing outrage at Postbank's controversial initial public offering, with some fund managers threatening to boycott the stock.

Postbank has announced its stock will be placed on the German DAX market for a price per share of between 31.50 euros ($38.80) and 36.50 euros ($44.96), significantly more than some investors have said the stock is worth, the German newspaper Die Welt reports.

"It is clear that we will no longer order the number of shares that we originally wanted to buy," Jens Meyer, a fund manager at second-largest German investment company Deka told Die Welt.

The Postbank IPO became controversial when an internal memo from Deutsche Bank, which is underwriting the offering, indicated some Deutsche Bank analysts consider the shares overpriced. Deutsche Bank also indicated it might like to purchase Postbank, rather than see the bank go public.

Klaus Zumwinkel, head of Postbank owner Deutsche Post, said he had not been swayed by investor complaints and still considered the planned price fair. He said foreign investors have been much more positive about the proposed price of the new shares than German investors.