The chief executive of Hypo Real Estate says that a German government plan to enforce a controversial “squeeze-out” of minority shareholders next week is the only option for the troubled bank. Axel Wieandt said the move, which will deny shareholders the chance to recover further value from the lender after its near-collapse, was in HRE’s “best interests”. Stakes of shareholders including US buyout group JC Flowers were heavily diluted when the government put €3bn into HRE, giving it 90%. Investors are being offered €1.30 for each share, compared with €1.39 in a previous tender offer.

This entry was posted by Gwen Robinson on Wednesday, September 30th, 2009 at 4:47 and is filed under Capital markets, Private equity. Tagged with Hypo Real Estate, jc flowers. Edit this entry.