The beginning of the end

Billionaire to Benko: “Trust has been destroyed”

Signa investor Kühne: lost confidence in the financial juggler back in December 2022

(Bild: Achim Multhaupt/laif/picturedesk.com, edition a Krone KREATIV,)

Excerpt from the new book "Inside Signa - The Rise and Fall of René Benko": How the German multi-billionaire Klaus-Michael Kühne (86) heralded the beginning of the end of the Signa card house on December 1, 2022.

When does the end begin? That's not always so easy to answer. In the case of Signa, however, December 1, 2022 could mark the beginning of the end.

An icy wind has been blowing in Benko's face for some time now. The gray December day begins calmly and routinely for him in Zurich. As usual, he spends the night in the discreet Zurich luxury hotel Baur-au-Lac, which made international headlines in 2015 when leading officials from FIFA, the world soccer association, were taken away under the glare of reporters' flashlights on suspicion of corruption.

Signa investor Kühne: lost confidence in the financial juggler as early as December 2022

(Bild: Achim Multhaupt/laif/picturedesk.com, edition a Krone KREATIV,)

Report to the Hamburg businessman
Benko is a regular at the Baur-au-Lac. After a quick espresso with one of his secretive Swiss investors, Benko boards his Global 700 and takes off for Hamburg. Also on board: Karl Gernandt. The experienced German manager is one of Klaus-Michael Kühne's closest confidants. Kühne, a sprightly businessman in his mid-80s, is one of the richest Germans with an estimated fortune of 33 billion euros. He holds a majority stake in Kühne+Nagel and has significant holdings in Lufthansa and Hapag Lloyd. Kühne has been an investor in Benko's Signa flagship Prime Selection AG for almost two years. And Karl Gernandt sits on the supervisory board there on behalf of Kühne. He is the multi-billionaire's eyes and ears. But now Kühne has summoned Benko to his home town of Hamburg.

On sale since April 20: The first book on the biggest bankruptcy in Austrian economic history (edition a, 235 pages, 25 euros)

(Bild: edition a)

Lunch on the posh Outer Alster Lake
After landing at Hamburg Airport in the Fuhlsbüttel district, Benko and Gernandt head straight to Hamburg's posh Outer Alster Lake. On the western bank, nestled in a green park landscape, stands the luxury hotel "The Fontenay", a modern five-star complex with unusual, wave-like architecture and a broad glass front. Kühne, who also owns The Fontenay, awaits Benko and Gernandt here. A light lunch is arranged between the three gentlemen between 1 and 3 pm. The personal exchange with Kühne is important to Benko. Very important, in fact. He has to perform for Kühne, must not show any weaknesses and must make it plausible that the Signa ship is in calm waters and is heading for good returns, just as Kühne likes it. Despite his advanced age, Kühne spares neither himself nor others. Benko knows that. He believes he is prepared for this. At least in theory.

The reality is different. Benko will not soon forget lunch at "The Fontenay". Kühne, in a dark suit and neatly tied tie, enters the restaurant with a view over the Inner Alster. A curt greeting. Kühne takes a seat at Benko and Gernandt's table. And then it happens.

He leaves Benko sitting there cold as ice
Just a few minutes after the conversation begins, Kühne suddenly gets up from the table. He sits Benko down coldly. At lunch in the hotel. The edgy Kühne gives Benko the cold shoulder. That must have felt like a punch in the jaw for Benko. The Signa inventor, stunned and visibly dismayed, flew in from Zurich especially for the meeting. Now he no longer understands his world, even if - as it soon turns out - it is more illusion than reality. But Benko has long since forgotten that. After a while, he takes the initiative and has to find out what exactly has prompted Kühne from Hamburg to make this apparent affront. At 1:22 p.m., the agitated Benko types an e-mail directly to Kühne on his smartphone. The subject line reads meaningfully: "I'm at a loss".

Dear Mr. Kühne

Frankly, I'm at a loss! I came to Hamburg today especially to continue the conversation with you and Mr. Gernandt from October and to discuss and consult with you as the second largest shareholder. 

Of course, I also brought details of your questions from Sunday.

I would like to have the opportunity to talk to you in person, even if it is only an hour after your lunch.

Thank you very much 

Yours, René Benko

The flying sparks could turn into a wildfire
Any reaction from Kühne? Not at all. But Benko can't take it lying down. He knows that he must do everything in his power to bring the matter back under control as quickly as possible. If the tablecloth between him and Klaus-Michael Kühne really were cut, the temporary sparks between the two entrepreneurs could develop into a real conflagration. He remains stubborn. He begs. He is desperate to understand what is going on. And at 1:50 p.m. he writes again: 

Hello Mr. Kühne!

A brief personal discussion with you would be very important to me - I'm still at your hotel. Even 10 minutes would be enough

I can't understand what went wrong

Best regards

Yours, René Benko

Hard-hitting billionaire with an open visor
After twenty minutes, which must have felt like an eternity for Benko, he gets an answer. And it's a tough one. Kühne sends a message to Benko at 2:11 pm. The tough-talking billionaire sends a copy to his most important employees at Kühne Holding. And a law firm.

(Bild: zVg Krone KREATIV)

Dear Mr. Benko,

I am sorry - the trust has been destroyed and I have asked Mr. Gernandt to notify you of my wish to reverse our investment in Signa Prime Selection AG. Formally, this must be decided by the Board of Directors of Kühne Holding AG, which I would like to inform of my wish and request that it be carried out as soon as possible.

Yours sincerely

Klaus-Michael Kühne

The worst-case scenario has materialized. Kühne wants out of Signa. With the withdrawal of his trust, a race against time begins for Benko. Because he urgently needs fresh money. He has been searching for months. Kühne is considered a tough guy, an investor who takes a detailed interest in his investments. Who asks precise questions. Who wants conclusive answers. But Benko absolutely wanted him on board. With Kühne, he got an entrepreneurial figurehead. But that came at a price. Kühne asked him questions to which he probably did not find the right answers. Then the shirt-sleeved Hamburg native pulled the ripcord.