FRANKFURT Oct 13 The German government
completed the nationalisation of stricken lender Hypo Real
Estate HRXG.DE on Tuesday, setting the stage for a prolonged
legal battle with minority shareholders, including J.C. Flowers.
A Munich court approved the squeeze-out of minority
shareholders, Hypo Real Estate said on Tuesday, which allowed
for the German government's rescue fund SoFFin to get 100
percent of the real estate lender.
Against the wishes of a raft of minority shareholders, the
proposal to squeeze them out was passed at an extraordinary
general meeting on Oct. 5, fixing an offer of 1.30 euros a
Trading was suspended on Tuesday with the share at 1.441
Private equity group J.C. Flowers & Co LLC last week took
legal action on behalf of funds that it advises, seeking to
prevent the full nationalisation of HRE, Flowers said in a
statement at the weekend. [ID:nLC353962]
The SdK shareholders association and hedge fund Exchange
Investor have taken similar legal action.
J.C. Flowers has also filed a formal complaint with the
SoFFin said on Monday that it had operated within the bounds
of the law.
(Reporting by Edward Taylor; editing by Karen Foster)