By Giulia Petroni

 

Uniper SE's shares plunged on Wednesday after the utility said that it is looking at bailout alternatives with the German government, including a potential equity raise that would result in a significant majority participation by the state.

Shares at 1222 GMT were down 15% at EUR4.13.

The German gas importer said that no decision has been made yet, but its financial situation has worsened over the last few months due to higher gas procurement costs.

In July, Germany had agreed to take a 30% stake in the utility as part of a bailout deal to rescue the company, which had been hit hard by dwindling supplies of Russian gas and rising energy prices. However, recently the energy crisis has escalated further amid extremely volatile gas and power prices and Russia halting flows through the Nord Stream pipeline.

"The deteriorating operating environment and Uniper's financial situation have to be taken into account while Fortum, the German government and Uniper continue their discussions on a long-term solution for Uniper," the German utility said.

 

Write to Giulia Petroni at giulia.petroni@wsj.com

 

(END) Dow Jones Newswires

September 14, 2022 08:53 ET (12:53 GMT)

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