Government to raise credit line to 8 bln euros document
Bailout talks could produce a deal this week sources
Uniper shares up 12
FRANKFURT, July 20 Reuters The German government plans to take a 30 stake in Uniper and will allow the utility to pass on some energy costs to customers as part of a bailout package that sources told Reuters could be finalised this week.
The government also plans to quadruple a credit line to the company via stateowned bank KfW, lifting it to 8 billion euros 8.2 billion from 2 billion euros, according to an economy ministry document seen by Reuters.
Reuters earlier reported that Berlin was leaning towards taking a stake of up to 30 and that a deal would allow Uniper to pass on soaring prices to customers.
Germany is scrambling to rescue Uniper, which has become a highprofile casualty of an economic standoff between the West and Russia. That standoff has sent gas prices soaring and raised fears of severe energy shortages this winter.
To cover the accumulated losses, a combination of a capital increase with a target federal investment of 30 in Uniper and additional hybrid equity is planned, the document said.
It was not immediately clear by how much Uniper might be allowed to pass on costs under the rescue deal or what measures the German government could take to shield vulnerable households from a steep price increase.
Chancellor Olaf Scholz39;s government is grappling with how to share out the bailout costs. It is in talks with…