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German state offloads most of its Pfandbriefbank stake

FRANKFURT, May 16 (Reuters) - Germany has sold most of its remaining stake in Deutsche Pfandbriefbank, 10 years after bailing out the property lender's former parent Hypo Real Estate (HRE). State-owned HRE placed around 22 million shares in Pfandbriefbank (PBB) with institutional investors, raising around 287 million euros ($340 million) and cutting its stake in PBB to 3.5 percent from 20 percent. HRE said a long-term institutional German investor, whom it did not name, snapped up 4.5 percent of PBB's stock. Germany bailed out HRE in 2008 and nationalised it in 2009 after the bank was forced to make massive writedowns on its holdings of mortgage-backed securities, which slumped in value after