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| Version 0 | Version 1 |
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| German government in Hypo offer | German government in Hypo offer |
| (21 minutes later) | |
| The German government has launched a takeover offer for troubled lender Hypo Real Estate (HRE). | The German government has launched a takeover offer for troubled lender Hypo Real Estate (HRE). |
| The government said it was offering shareholders 1.39 euros per share, in a step towards taking control of the commercial property company. | The government said it was offering shareholders 1.39 euros per share, in a step towards taking control of the commercial property company. |
| HRE has been Germany's highest-profile casualty of the financial crisis. | HRE has been Germany's highest-profile casualty of the financial crisis. |
| It was rescued by the government, which last month moved to take an 8.7% stake in the firm, buying 60m euros ($67m; £54m) worth of new shares. | |
| The bank said at the time that the move was "a prerequisite for the intended recapitalisation of Hypo Real Estate" that the government "gain full control." | |
| So far the government has provided the bank with loan guarantees of about 87bn euros. | |
| New powers | |
| In February, the German government agreed a draft law that would allow it to temporarily nationalise troubled banks, which was seen as paving the way for a takeover of HRE. | |
| And a new law signed this week gives the government the power to potentially force shareholders to sell their stakes in order to take control of banks, if voluntary efforts fail. | |
| US private equity firms JC Flowers and Grove International Partners currently own 21.7% of HRE. | |
| JC Flowers has indicated it wants to remain a shareholder. | |
| Last week, it said it "remains open to constructive talks" with the German government. | |
| But it added that it "reserves the right to pursue all other options, including legal recourse, to safeguard the interests of its investors". |