Deutsche Post is in talks to buy Exel, the UK logistics company, for about £3.4bn ($6.2bn) in what would be the largest acquisition by Europe's biggest postal group.

Shares in Exel soared by 17 per cent to £11.78½ after it confirmed the approach. Analysts said the German group could have to pay between £12 and £13 per share, valuing Exel at up to £3.8bn.