The German government offer to buy Hypo Real Estate

The German government on Friday launched its offer to buy Hypo Real Estate Holding AG, insisting it intends to buy 100% of the troubled lender despite possible opposition from the bank's biggest shareholders, led by U.S. investor JC Flowers & Co LLC.

Germany's bank rescue fund, known as Soffin, is offering €1.39 per share, valuing Hypo Real Estate at €321 million ($419 million). The bid is pitched at a 10% premium to the minimum statutory price of €1.26 that Soffin was required to offer.