Billionaire industry magnate commits suicide

Billionaire industry magnate commits suicide




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Negotiating with 40 banks in order to secure a bridging loan of hundreds of millions would be enough to break the spirit of even the most dedicated businessman. Sadly this businessman, German billionaire Adolf Merckle, chose to escape his financial troubles by jumping under a train on Monday night. 

Mr Merckle at 74 years of age was Germany’s fifth richest individual and was listed in Forbes magazine as the 94th richest person in the world. Controlling a huge corporate empire of 120 companies generating revenue of over £27.2 billion, his net worth was thought to be around £6.5 billion.
 
However, practically every single one of his companies had been suffering the effects of the credit crunch, and the quiet, self-made billionaire had been named as the biggest individual loser late last year when Volkswagen shares fell, reportedly losing hundreds of millions of pounds.
 
Mr Merckle was said to have despaired as the economic downturn worsened. In a statement, his family said: “The desperate situation of his companies, caused by the financial crisis, the uncertainties of the last few weeks and his powerlessness to act, broke the passionate family entrepreneur and he took his own life.”
 
During the last few weeks, Mr Merckle had been in talks with dozens of banks to scrape together a £370 million bridging loan, which according to the Financial Times Deutschland on Monday, had finally been granted.
 
Banks agreed to give a reprieve on loans that the tycoon was due to pay at the end of last year, but only if he sold his stakes in his major companies, HeidelbergCement, Ratiopharm and Phoenix Pharmahandel.
 
Last month, Mr Merckle stated that without taking big risks he wouldn’t have been able to build an empire. He went on to say: “I have already survived quite a lot of 'stock market crashes', but I was not prepared for a banking and financial crisis on this scale.”

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