FRANKFURT, May 13 (Reuters) - 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 outside investor.
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)