A group of investors led by US private equity firm JC Flowers has filed a suit with a court in Munich in an attempt to prevent Germany's bank rescue fund Soffin from squeezing out minority investors in Hypo Real Estate.
A group of investors led by US private equity firm JC Flowers has filed a suit with a court in Munich in an attempt to prevent Germany's bank rescue fund Soffin from squeezing out minority investors in Hypo Real Estate.
The investors, who own less than 3% of Hypo shares, claim the squeeze-out amounts to a violation of their legal right of ownership. Under a plan approved by Hypo Real Estate shareholders on 5 October, minority investors would be forced to sell their stock to Soffin for EUR 1.30 per share, giving the state fund full ownership of the property financier.
Hypo Real Estate has received over EUR 100 bn in German government bailout funds and debt guarantees to keep it afloat after its Dublin-based Depfa Bank unit failed to secure short-term funding in the wake of the financial crisis.
