Uniper says German govt could take majority stake

OTTAWA: Germany’s Uniper said on Wednesday the government could take a controlling stake in the company as the utility seeks further aid, sending its shares tumbling 20 per cent.

Ater Moscow slashed gas flows to Germany, Uniper has been forced to burn through its cash reserves sourcing expensive alternative supply on the spot market.

“The parties are looking into alternative solutions, inter alia a straight equity increase that would result in a significant majority participation by the German Government,” Uniper said in a statement.

In July, Berlin said it would take a 30% stake as part of a rescue of Germany’s largest importer of Russian gas.

Bloomberg reported earlier in the day that the government could take a stake of more than 50 per cent, citing sources familiar with the mater.

No decisions have been made beyond what was agreed in July, Uniper said on Wednesday.

The company has already secured 13 billion euros of credit lines from the state, most of which it has already drawn. Last month it asked for more state help, raising the bill for its bailout to 19 billion euros ($19.04 billion).

Uniper shares were at an all-time low of 3.87 euros at 1145 GMT.

The economy ministry said it was in talks with Uniper, and Finland’s Fortum, Uniper’s largest stakeholder, also said talks with the German government continued.

“We want discussions to be successful, which is why we are not commenting,” a spokesperson for the ministry said.