First German company to raise alarm over scarce gas, prices
Gas stocks lowest since early 2017
Fortum says will help but crisis requires big efforts
Works council wants German government to step in
FRANKFURTDUESSELDORFBERLIN, June 30 Reuters Germanys Uniper is in talks about a possible government bailout as the financial fallout from dwindling supplies of Russian gas reverberates across Europe, sending shares in the energy company sliding.
The falling supply of gas has forced utilities across the continent into expensive purchases in spot markets while governments, worried about rising inflation, have capped prices that can be charged to consumers, resulting in many energy companies going bust.
A Berlin Economy Ministry spokesperson said it was in talks with Uniper, which is among Russian Gazprom39;s biggest European customers, about stabilisation measures.
Uniper Chief Executive KlausDieter Maubach said the talks entailed possible guarantees, raising credit facilities or even the state taking a share of Uniper39;s equity.
At 1142 GMT, Uniper shares in the midcaps index stood 15.5 lower. They are down 68 since the beginning of the year and at their lowest since March 6, 2017. Finland39;s Fortum which has a 78 stake in Uniper fell 5.4.
Uniper, forced to ditch its financial forecasts and issue a profit warning, has raised the pressure on the German government to allow utilities to pass on soaring energy costs, a step it stopped short of triggering when it moved to…