Behind every billionaire there is a story!

Merckle to hand control of groups to banks

Adolf Merckle, the German billionaire who lost large sums by betting on falling share prices, is about to give control over large parts of his industrial empire to his banks.

Bankers close to the discussions told the FT that Mr Merckle and his five leading banks came to an agreement last night.

The accord would see the banks effectively take control of Mr Merckle’s three main companies, including HeidelbergerCement, the listed cement company in which he owns a stake of more than 80 per cent, Ratiopharm, Germany’s largest generic drugs maker, and Phoenix, the country’s largest drugs wholesaler.

“He will give the stakes as collateral to the banks,” a person involved in the discussions said.

The arrangement, which had to be agreed by all of Mr Merckle’s 40 lenders last night, means that the banks can sell some or all of those assets to pay down the family’s debt.

“It could well be that all three companies will be sold,” the person said.

read the rest published by FT here:

http://www.ft.com/cms/s/0/d821724e-c1a4-11dd-831e-000077b07658.html