Flowers Funds Sue Germany's HRE Over Squeeze-Out

Law360, New York (October 12, 2009, 7:35 PM EDT) -- Investment funds counseled by New York-based private equity group J.C. Flowers & Co. LLC have reportedly launched a lawsuit in a bid to prevent a German government agency from squeezing out minority shareholders of state-aided bank Hypo Real Estate Holding AG.

Flowers said Sunday that the suit — filed last week in a Munich court — seeks to invalidate the squeeze-out, which would complete the nationalization of the covered bond market bank, Reuters reported Monday.

Munich-based HRE — a combination of three German banks — ran...
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