May 13, 2014 / 6:05 PM / 4 years ago

German government committee opts to wind down Depfa bank

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)

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