July 29, 2014
BERLIN (AP) - Hypo Real Estate Holding AG says that the German
government will take an 8.7-percent stake in the troubled commercial property lender.
The bank said Saturday that the government's financial sector rescue fund will acquire new shares in the company worth euro60 million ($81 million) - giving it about 8.7 percent of HRE.
It describes that as "a first step to recapitalize" the bank.
The company ran into trouble last September. Since then, the government has shored it up with loan guarantees totaling some euro87
Legislation is currently making its way through parliament that would allow the government to take over the bank fully by expropriating shareholders if necessary.
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