The German government may make an offer for Hypo Real Estate Holding AG, the bailed-out commercial property lender, by the end of the week as it moves closer to the country’s first bank nationalization since the 1930s, three people close to the matter said.
Germany’s bank rescue fund, Soffin, will bid as early as April 9 to gain a majority holding in the Munich-based lender, said the people, who spoke on condition of anonymity. The state may offer as much as 1.28 euros a share, the people said, or 12 percent above today’s closing price in Frankfurt trading.
The government acquired an 8.7 percent stake in Hypo Real Estate last month as a first step toward taking control. The company received 102 billion euros ($136 billion) of credit lines and debt guarantees from the state and financial firms after a funding shortage at its Dublin-based Depfa Bank Plc unit last year nearly led to bankruptcy.
“The government is under some time pressure because the bank needs to be kept above water,” said Dirk Becker, a Frankfurt-based analyst at Kepler Capital Markets, who recommends selling the shares.
German daily Boersen-Zeitung reported earlier today that the government may make an offer this week.
(Source) Bloomberg
