RETAIL/WHOLESALE

Berlin  -  The German billionaire Adolf Merckle (Ratiopharm, Phoenix, Heidelberg Cement) is dead. The 74-year old had already died on Monday evening around 5.30 p.m. in a railway accident near his hometown Blaubeuren in Baden-Wurttemberg. His body was found around 7.30 p.m. by an employee of Deutsche Bahn who immediately informed the police. The family yesterday confirmed his suicide. A farewell letter written by Merckle was found. According to a report by the German magazine Spiegel, he did not give any reasons or motives in this letter, but apologised for his decision.

According to his family, the uncertainty of the last weeks and the inability to do anything have broken the passionate family entrepreneur and he terminated his life. The financial crisis and severe losses caused by speculations with Volkswagen shares recently unhinged Merckle's companies. Lastly, Merckle's shareholding company VEM had been negotiating with creditor banks about a bridging credit of 400 million euros und succeeded in a moratorium for the next months and a standstill agreement with the banks.

According to VEM, the entrepreneur's death will not have any impact on the ongoing restructuring process. The two VEM managers Ludwig Merckle and Susanne Frieß are authorised to continue business and negotiations with the banks. Adolf Merckle is supposed to have given all relevant signatures for the restructuring process. Moreover, he had granted general power to his managers, a local German newspaper quoted his family. As Adolf Merckle did not manage any of the companies alone, now business can go on just as usual. His company shares will now be handed over to his children.

PHARMA ADHOC, Wed, January 07, 2009 10:42am CET