Deutsche Post World Net plans to sell DHL to Fedex and talks are underway, according to a report in the Financial Times Deutschland, which quoted sources familiar with the matter.

The paper quotes a manager within the company as saying that Deutsche Post CEO Klaus Zumwinkel "wants to leave the company in a clean condition" when he retires in November.

Officials at Deutsche Post and FedEx refused to comment on what they described as rumors or speculation.

Financial investment analysts project DHL may lose up to $900 million this year in the United States, where the company has struggled to mount a challenge to UPS and FedEx in the domestic parcel and express market. Deutsche Post said Wednesday it will take an $874 million writedown of the company's value.

Among other internal problems, DHL last week announced layoffs in Germany and this week moved to demand a $93 million payment from its less than friendly ally ABX Air.

Michael Fabey
Traffic World