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Austria nationalizes Hypo Alpe Adria

Austria has moved to nationalize Hypo Alpe Adria, a unit of German public-sector bank BayernLB.
/ Source: The Associated Press

Austria has moved to nationalize Hypo Alpe Adria, a unit of German public-sector bank BayernLB.

BayernLB said Monday that Austria is taking its 67.08 percent stake in Hypo Alpe Adria for the symbolic price of euro1 ($1.46).

It added that it was helping secure the unit's liquidity and giving up claims to a total of euro825 million from Hypo Alpe Adria.

Bavarian Finance Minister Georg Fahrenschoen, who heads BayernLB's administrative board, said the deal was needed to "stabilize a bank of systemic importance to Austria and southeastern Europe."