Frankfurt, June 5 - Stricken German retail and tourism group Arcandor has launched a second attempt to get help from the German government to secure its survival, the company said on Friday.
Arcandor has asked the government for a 437 million euro ($621 million) loan from state bank KfW which will need to be approved via the normal channels and is due to mature after six months, it said.
The move comes after politicians made clear over the past couple of days that Arcandor would most likely not qualify for the economic stimulus fund from the state, which it provides for companies that are currently suffering from the economic downturn but were healthy before the credit crisis.
The European Commission said on Wednesday Arcandor's woes pre-dated the crisis, essentially making it ineligible for the aid from the special fund.
Berlin is now pushing Arcandor to consider a deal with its rival Metro. German Chancellor Angela Merkel said private sector solutions for Arcandor had not been exhausted and pressed for talks to take place quickly to preserve jobs.
Arcandor had requested 650 million euros in loan guarantees from the German bailout fund and said its application for a state bank loan would not affect its earlier call.
The German government's steering council, which gives its view to another committee on whether companies qualify for state aid, is due to meet on Friday to discuss Arcandor's case.
At 0926 GMT, Arcandor shares were broadly unchanged at 1.89 euros, while Metro shares were down 0.8 percent at 35.53 euros. The DJ Stoxx index of Europe retailers was flat.
Time is running out for Arcandor. It needs to renew credit lines worth 710 million euros ($1.01 billion) by next Friday which hinge on support from the government and it has warned it may not survive if it fails to do so.
Metro opposes government help for its rival as it would distort competition, it said. It has suggested a merger of the two retailers' department store chains instead to create a national champion that would be more profitable.
Arcandor said its financial stability was a precondition for talks with Metro to develop an economically viable deal outline.
The chief executives of Metro and Arcandor have already met once to sound out a potential deal, and are due to meet again early next week, a source close to the companies said.