Berlin takes control of lender Hypo Real Estate
THE GERMAN government completed the nationalisation of stricken lender Hypo Real Estate yesterday, setting up a prolonged legal battle with minority shareholders, including US investment firm JC Flowers.
A Munich court approved the squeezing out of minority shareholders, Hypo Real Estate said yesterday, which allowed for the German government’s rescue fund SoFFin to take control of 100 per cent of the real estate lender, which has received €102bn (£95bn) of state aid.
Against the wishes of a raft of minority shareholders, the proposal to squeeze them out was passed at an extraordinary general meeting on 5 October, fixing an offer of €1.30 a share. Trading was suspended yesterday with the share at €1.441. Buyout group JC Flowers, run by billionaire J Christopher Flowers, last week took legal action seeking to prevent the full nationalisation of the lender.