Flowers Says He Could Accept Dilution of HRE Stake

MUNICH (Reuters) – U.S. investor Christopher Flowers is prepared to accept dilution of his group’s 24 percent stake in stricken German bank Hypo Real Estate (HRXG.DE) if terms of the deal are right, he said on Tuesday.

“Should the Flowers stake be diluted by the state’s taking a stake via a capital increase at appropriate conditions, the investors linked to Flowers would accept that without objections,” a Flowers statement sent to Reuters said.

“All the solutions that we have presented envision that the state can acquire the majority of HRE,” he added.

Flowers said he did not intend to exit HRE entirely but would rather “stay on board”. No date had been set for more talks with Berlin, he added.

(Reporting by Peter Maushagen; Writing by Michael Shields; Editing by Erica Billingham)