E.ON could sell its stake in Gazprom: Goldman Sachs
8 Feb, 2007 02:40
German energy giant E.ON could be looking to sell its stake in Gazprom to finance its acquisition of Spanish energy corporation Endesa, according to Goldman Sachs.
Last week E.ON offered $US 53 BLN in a bid to buy Endesa. Partly it had been planning to finance the purchase through a syndicated loan of $US 37 BLN. Goldman Sachs analysts say it would be logical for the German company to sell its 6.4% stake in Gazprom, valued at around $US 16 BLN. However Kaha Kiknavelidze from UBS in London expects that E.ON will probably opt to issue more equity, rather than severing its links with Gazprom including key supply relations and a seat on the board.