Monday May 4, 10:27 AM
Germany owns 22.62% of HRE bank capital
FRANKFURT (AFP) - Germany now owns almost 23 percent of the troubled Hypo Real Estate (Xetra: 802770 - news) bank, the banking sector stabilisation fund SoFFin said on Monday, as a public offer for HRE shares neared its deadline.
As of late Thursday, the state owned 22.62 percent of the shares in HRE and aimed to acquire a stake of at least 50 percent plus one share.
Friday was a bank holiday in Germany.
Berlin wants to nationalise the bank, saying that its failure would have grave consequences for Europe's biggest economy, but is opposed by the biggest shareholder, the US investment fund JC Flowers.
The government has offered 1.39 euros (1.85 dollars) per share for HRE stock, and its offer runs until 2200 GMT on Monday.
To date, HRE has received 102 billion euros in loans and state guarantees to ensure it doesn't collapse.
Its troubles began in September, when its Dublin-based Depfa Bank (Xetra: DEP.DE - news) unit failed to find short-term funding owing to the widening downturn and credit crunch.
On Tuesday, HRE is expected to report a first-quarter net loss of around 520 million euros according to an average poll of seven analysts by Dow Jones Newswires.
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