E.ON could sell its stake in Gazprom: Goldman Sachs
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.