Hedge Fund manager Exchange Investors has rejected the takeover offer made by the German government for the shares of property financier Hypo Real Estate.
Hedge Fund manager Exchange Investors has rejected the takeover offer made by the German government for the shares of property financier Hypo Real Estate.
The federal government, via the German bank stabilisation fund Soffin, unveiled an offer of EUR 1.39 per Hypo share last week in order to nationalise the bank. The offer runs to 4 May, after which investors run the risk of having their shares expropriated.
But Dutch-based Exchange Investors, which holds a 1.4% stake in Hypo, has rejected the takeover bid, pointing to legal claims against the bank stemming from its takeover in 2007 of Dublin-based infrastructure financier Depfa.
A consortium led by US investor J.C. Flowers, which acquired a 20% stake in Hypo last year, is also objecting to the government's nationalisation plans.
