And it looks like Lloyds TSB is leading the pack, with an offer pitched at €67 a share - totalling €11bn according to trader talk.
Reuters reports Santander, Deutsche Bank are also interested. Allianz and Commerzbank - earlier favourites are still in the running too.
Whatever the outcome, shares in Deutsche Postbank are moving: up close to 5.7 per cent at 9:55 BST.
The German government, meanwhile, is reportedly hoping to see a “new national champion” emerge. Bad idea. The last thing the sclerotic German banking market needs is another lumbering biedermeier bank. Berlin, of course, through Deutsche Post, could veto any sale.
Deutsche Post, which owns 50 per cent of Postbank, is expected to make a statement later today. We’ll post it as soon as we get it.
Related links
Expanding Santander - Felix Salmon, Market Movers
