The beginning of the end – billionaire to Benko: “Trust has been destroyed”

When does the end begin? That is not always so easy to answer. However, in the Signa case, December 1, 2022 could mark the beginning of the end.

An icy wind has been blowing in Benko’s face for a long time. The gray December day starts quietly and routinely for him in Zurich. As usual, he spent the night at the discreet luxury hostel Baur-au-Lac in Zurich, which made international headlines in 2015 when leading officials of the world football governing body FIFA were led away under the flashlights of reporters on suspicion of corruption.

Report to the Hamburg merchant
Benko is a regular customer at Baur-au-Lac. After a quick espresso with one of his mysterious Swiss investors, Benko gets into his Global 700 and heads to Hamburg. On board: Karl Gernandt. The experienced German manager is one of Klaus-Michael Kühne’s closest confidantes. Kühne, a cheerful businessman in the mid-80s, is one of the richest Germans with an estimated fortune of 33 billion euros. He owns the majority shares in Kühne+Nagel and has significant interests in Lufthansa and Hapag Lloyd. Kühne has been investing 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 eyes and ears of the multi-billionaire. But now Kühne has called on Benko to report to his hometown of Hamburg.

Lunch on the noble Buitenalster
After landing at Hamburg Airport in the Fuhlsbüttel district, Benko and Gernandt head straight to Hamburg’s noble Outer Alster. On the west bank, embedded in a green park landscape, is the luxury hotel “The Fontenay”, a modern five-star complex with special, wave-like architecture and a wide glass facade. Kühne, who also owns the “Fontenay”, is waiting here for Benko and Gernandt. A light lunch has been arranged between the three gentlemen between 1:00 PM and 3:00 PM. The personal exchange with Kühne is important for Benko. Very important actually. For Kühne, he must perform, show no weaknesses and demonstrate that the Signa ship is in calm waters and will achieve a decent return according to Kühne’s taste. Despite his old age, Kühne does not spare himself or others. Benko knows that. He thinks he’s prepared for that. At least in theory.

The reality is different. Benko will not soon forget lunch at “The Fontenay”. Kühne, dressed in a dark suit and a neatly tied tie, enters the restaurant with a view of the Binnenalster. Short greetings. Kühne takes a seat at Benko and Gernandt’s table. And then it happens.

He leaves Benko freezing
Only a few minutes after the conversation started, Kühne suddenly stood up from the set table. He leaves Benko freezing. During lunch at the hotel. The angular Kühne gives Benko a cold shoulder. That must have felt like a punch in the jaw for Benko. The Signa inventor, bewildered and visibly dismayed, flew in from Zurich especially for the appointment. Now he no longer understands his world, even though it soon turns out to contain more appearance than reality. But Benko has long forgotten that. After a while he takes the initiative; he must find out what exactly prompted Kühne from Hamburg to commit this apparent insult. At 1:22 p.m., the excited Benko types an email directly to Kühne on his smartphone. The subject line says tellingly: “I don’t remember”.

Dear Mr Kühne,

To be honest, I don’t know anymore! I came to Hamburg today especially to continue the conversation with you and Mr Gernandt from October and to exchange ideas and discuss business with you as the second largest shareholder.

Of course, I have also provided details about your questions from Sunday.

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

Thank you

Ihr René Benko

The flying sparks can turn into a wildfire
A response from Kühne? Stay out. But Benko can’t let it go. He knows very well that he must do everything he can to get the matter back under control as quickly as possible. If the tablecloth between him and Klaus-Michael Kühne were actually cut, the initial sparks between two entrepreneurs could grow into a real conflagration. He remains stubborn. He begs. Desperate to understand what is going on. And continues again in writing at 1:50 p.m.:

Hello Mr. Kühne!

A short personal conversation with you would be very important to me – I am still with you at the hotel. 10 minutes is enough

I don’t understand what went wrong

Cordial greetings

Ihr René Benko

Tough billionaire with an open mind
After twenty minutes, which must have felt like an eternity to Benko, he receives an answer. And she has the talent. Kühne sends a message to Benko at 2:11 p.m. The tough billionaire with an open mind places his most important employees in the Kühne Holding. And a law firm.

Dear Mr Benko,

I am sorry – the trust has been destroyed and I have asked Mr. Gernandt to inform you of my wish to reverse our investment in Signa Prime Selection AG. This must be formally decided by the Board of Directors of Kühne Holding AG, to which I hereby inform of my wish and would like to request implementation in the short term.

Cordial greetings

Klaus-Michael Kuhne

The worst-case scenario has occurred. Kühne wants to leave Signa. With his confidence withdrawn, Benko begins a race against time. Because he actually urgently needs fresh money. He’s been looking for months. Kühne is considered a tough guy, an investor who is interested in the details of his investments. Who asks precise questions. Who wants conclusive answers. But Benko really wanted him on board. With Kühne he got an enterprising figurehead. But that has its price. Kühne asked him questions to which he probably did not find the right answers. Then the shirt-sleeved Hamburger pulled the drawstring.