'Squeeze-out' only option for Hypo Real Estate--FT

LONDON, Sept 29 (Reuters) - A German government plan to enforce a 'squeeze-out' of minority shareholders is the only option for beleaguered Hypo Real Estate, its chief executive Axel Wieandt told the Financial Times in an interview.

Wieandt said the move, which would prevent shareholders from recovering further value from the lender, was 'in the best interests' of the company.

'The government requires full control as a prerequisite for its further support of the group,' he told the newspaper. 'No one else would have provided the required amount of liquidity and capital.

'We have to be pragmatic about it. The company is only a going concern because of the government support.'

The move will be considered at an extraordinary meeting next Monday, a year after the government and German banks rescued the bank following a liquidity crisis at its Dublin- based unit Depfa, the FT said.

In August, the bank said it lifted provisions for problem loans after falling into the red in the second quarter and said it continued to rely on government support.

(Reporting by Jan Harvey; editing by Andre Grenon)

(([e-mail] [phone]; Reuters Messaging: [e-mail])) Keywords: HYPO/FT PICKUP



LONDON, Sept 29 (Reuters) - A German government plan to enforce a 'squeeze-out' of minority shareholders is the only option for beleaguered Hypo Real Estate, its chief executive Axel Wieandt told the Financial Times in an interview.

Wieandt said the move, which would prevent shareholders from recovering further value from the lender, was 'in the best interests' of the company.

'The government requires full control as a prerequisite for its further support of the group,' he told the newspaper. 'No one else would have provided the required amount of liquidity and capital.'

'We have to be pragmatic about it. The company is only a going concern because of the government support.'

The move will be considered at an extraordinary meeting next Monday, a year after the government and German banks rescued the bank following a liquidity crisis at its Dublin-based unit Depfa, the FT said.

In August, the bank said it lifted provisions for problem loans after falling into the red in the second quarter, and said it continued to rely on government support.

(Reporting by Jan Harvey; Editing by Sugita Katyal) Keywords: HYPO/FT PICKUP ([e-mail]; [phone]; Reuters Messaging: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.