FRANKFURT May 13 Germany's nationalised bank
Hypo Real Estate (HRE) on Tuesday said a steering committee had
recommended winding down its Depfa Bank unit, overruling HRE
management's recommendation to instead pursue a sale to an
On Tuesday the inter-ministerial steering committee said
Depfa's assets would be transferred to FMW Wertmanagement, a
government-owned investment vehicle, in the hope that gains from
asset sales would benefit the taxpayer.
Its task would be "to reach the best possible wind-down
result for the German taxpayer", said Christopher Pleister,
chairman of the steering committee.
HRE's board had recommended a sale of Depfa to investor
group Leucadia and its partner Massachusetts Mutual.
HRE bought Depfa in 2007. HRE was forced to seek a bailout
in 2008 and was later nationalised.
(Reporting by Edward Taylor; Editing by Mark Trevelyan)