RPT-UPDATE 1-HeidelbergCement falls on report Merckle dead

(Repeats to additional subscribers)

* Die Welt reports Merckle hit by train

* Merckle family controls HeidelbergCement

* HeidelbergCement shares drop more than 11 percent

(Adds Welt report, background)

FRANKFURT, Jan 6 (Reuters) - Shares of HeidelbergCement (HEIG.DE) dropped more than 11 percent after a German newspaper reported on Tuesday that its biggest shareholder had died.

German billionaire Adolf Merckle, who last year joined the ranks of investors who were caught on the wrong foot by an unprecedented surge in carmaker Volkswagen's (VOWG.DE) shares, died after being hit by a train on Monday evening, Die Welt newspaper reported in its online edition, citing police.

Shares of HeidelbergCement fell more than 11 percent to an intraday low of 29.16 euros, but recovered to trade 8 percent lower at 30.65 euros by 1447 GMT.

"Some investors are afraid that there will be no one to lead negotiations during this sensitive situation for the company," one trader in Frankfurt said.