Hypo Real Estate’s management and the head of the German government’s bank bail-out fund faced the wrath of the stricken bank’s shareholders on Tuesday as they pleaded for – and won – investor approval for a state-led takeover.

Many small investors are angry that they will be forced to sell their holdings under government plans for a so-called “squeeze-out” of minority shareholders, after Berlin won support at an extraordinary general meeting to raise its stake in the bank to 90 per cent.