Shares plunge as much as 80
Turnaround plans foresee equity wipeout
CEO says Varta needs double digit mln eur sum in fresh fundingCEO Ostermann says significant debt relief also a must

MUNICH, July 22 Reuters Varta stock plunged as much as 80 to a record low on Monday after the German battery maker said restructuring options to avert insolvency, potentially with the help of Porsche, would leave shareholders with nothing.

The stock was down by two thirds at 0850 GMT on Monday, following a statement on Sunday that two remaining turnaround proposals would result in a delisting, with shareholders except Austrian majority owner Michael Tojner receiving no compensation.

Varta needs significant relief on its debt of close to 500 million euros 544 million plus fresh funding worth a high doubledigit million euro amount, CEO Michael Ostermann, who joined in May, told Reuters.

I came on board to rescue Varta. This is something close to my heart, Ostermann said.

Potential new investors, including Tojner and sportscar maker Porsche, would inject capital under one of the scenarios, the company added in its statement.

Varta has suffered from bad investment bets in its traditional field of small batteries for consumer electronics but an expensive foray into V4Drivebranded batteries for hybrid sportscars that did not catch on has accelerated the group39;s decline.

Varta said it would notify the relevant courts of an overhaul in accordance with Germany39;s corporate…