German publishers oppose Deutsche Post's free newspaper plan

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http://www.forbes.com/markets/feeds/afx ... 78711.html

FRANKFURT (Thomson Financial) - German newspaper publishing houses are strongly opposing plans by Deutsche Post World Net AG. to launch a free newspaper, said Wolfgang Fuerstner, managing director of VDZ, a publishers association.

Deutsche Post's board member Juergen Gerdes Wednesday said in an interview with Financial Times Deutschland the German mail services company aims to grow its revenues from advertising as a way of offsetting declines in its core mail business, and to that effect will launch a free newspaper with a print run of 1 million.

'We won't take lying down that Deutsche Post, as a state-owned company with unique competitive edges, threatens press diversity in distribution', Fuerstner told Handelsblatt.

He said VDZ will make use of all possible legal and political means, including legal action through the European Union courts.

Gerdes, who heads Deutsche Post's mail operations and German parcel operations, said the company targets revenues in a three-digit million euro range from advertising by entering the free newspaper market. Fuerstner put the total market at 820 million euros.

Gerdes said Deutsche Post is seeking to cooperate with publishing houses for printing and editorial content.