The German government has today offered 1.39 euros per share to take over Hypo Real Estate (HRE). The offer represents a 15.8% premium over HRE’s closing share price yesterday and a 10% premium to a minimum offer price of 1.26 euros set out in a new law on bank nationalisations.
The offer is well below the price of 3.0 euros that US private equity investor J.C. Flowers, who runs the firm of the same name, has signalled he will accept for his HRE stake of nearly 25%.
The German government recently passed a law which allows it to expropriate shares in stricken banks after failing to agree a takeover price with Flowers.