BERLIN (Reuters) – The German government said on Tuesday it had decided to support Siemens Energy with 7.5 billion euros, as part of an agreement with other parties, to help preserve the backlog company orders.
These guarantees are part of an agreement with banks and other parties and cover a total of 15 billion euros. It would also impose on the group a temporary freeze on dividends and bonuses at senior executive level, the Economy Ministry said in a statement.
Banks are expected to provide Siemens Energy with guarantees worth 12 billion euros, partly covered by a government backstop, while the struggling wind turbine maker will seek 3 billion euros. additional euros from other sources, specifies the press release.
“In recent weeks, the federal government has had intensive contacts with Siemens Energy, Siemens AG, its largest shareholder, and private banks,” the statement said.
Reuters reported last week that all stakeholders had reached an agreement in principle to cover the guarantees, allowing a recovery in the group’s stock after news of the talks sent the share price tumbling to a record low last month .
(Reporting by Christian Kraemer, written by Madeline Chambers and Matthias Williams; by Augustin Turpin, edited by Kate Entringer)
Copyright © 2023 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
