* Bids in by Third Point, Mead Park, U.S. investor -sources
* HRE to pick buyer in late April/early May - sources
* Depfa made 2013 pretax loss of 20 mln euros - document
(Adds details on Depfa sale)
By Arno Schuetze and Matthias Sobolewski
FRANKFURT, April 2 State-rescued German bank
Hypo Real Estate has attracted three final bids for
its public finance unit Depfa Bank and is likely to
pick a buyer within the next couple of weeks, sources familiar
with the process told Reuters.
A bidder group led by hedge fund Third Point and a
consortium including hedge fund Mead Park and former UBS Chief
Executive Oswald Gruebel are among the final contenders, as is
an unnamed U.S.-based investor, they said.
The offers value Depfa at 200-300 million euros ($276-$414
million) and Hypo Real Estate will pick a buyer in late April or
early May, they added.
Hypo Real Estate has to sell Depfa by the end of 2014 and
its Deutsche Pfandbriefbank AG arm by 2015 as a
condition for the European Commission's approval of its state
In a presentation that Hypo Real Estate prepared for the
German government and that was seen by Reuters, it said that it
sees greater returns from a sale of Depfa than from winding down
the public finance specialist, despite a recent deterioration of
Depfa posted a pretax loss of 20 million euros in 2013 but
had a net profit of 36 million. Its balance sheet total
decreased to 49 billion from 73 billion, while its core tier 1
capital ratio under Basel III rules in their most stringent form
increased to 19.8 percent.
HRE itself saw its 2013 pretax profit decline to 109 million
from 182 million euros in 2012, while its core tier 1 capital
ratio decreased to 14 percent, according to the presentation.
Germany will not provide any guarantees to shield Depfa's
large public finance portfolio to the bidders, according to the
The government has received 485 millions euros more in fees
and redemptions from Depfa than it spent on the 1.2 billion
bailout, the document also showed.
Germany nationalised Hypo Real Estate after it collapsed in
the aftermath of the Lehman Brothers bankruptcy and gave a 10
billion euro capital injection as well as 145 billion euros in
liquidity guarantees to the stricken lender.
Hypo Real Estate, Third Point and Gruebel declined to
comment, while Mead Park was not immediately available for
($1 = 0.7249 euros)
(additional reporting by Kathrin Jones, editing by William