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Lehman Brothers - Companies & Markets

Berlin set to win HRE majority control

By James Wilson in Frankfurt

Published: June 1 2009 12:30 | Last updated: June 1 2009 20:15

Germany’s government expects to take a decisive step on Tuesday in resolving its biggest bank crisis by winning majority control of Hypo Real Estate, ending the threat of expropriation hanging over investors.

The government has clashed with private shareholders over the fate of the lender, which ran into liquidity problems and needs billions of euros in fresh capital to avoid being closed down by regulators.

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