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PREUSSAG POSTPONES HAPAG-LLOYD IPO

PREUSSAG POSTPONES HAPAG-LLOYD IPO

   Preussag, the German conglomerate that owns Hapag-Lloyd, has decided to postpone the initial public offering of the shipping and logistics company.

   Half of the share capital of Hapag-Lloyd was due to be placed on the stock market in the first quarter of next year. Preussag has changed plans because new German tax laws will affect capital gains, said Hapag-Lloyd chairman Bernd Wrede.

   “This may be postponed until 2003,” he said.

   Preussag is interested in raising money by selling its subsidiary company, but it is also aware that Hapag-Lloyd generates substantial profits for the group, Hapag-Lloyd said

   Hapag-Lloyd owns the container shipping line Hapag-Lloyd Container Line, the chemicals logistics and inland transport firm VTG-Lehnkering, the construction modules company Algeco and the freight forwarder Pracht. Preussag acquired the company in 1997 for about 2.8 billion Deutsche marks ($1.6 billion), largely because of its profitable tourism activities.