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Engie reportedly ponders bid for RWE's Innogy

14 March 2017

The biggest fallers among banks were Raiffeisen Bank (RBIV.VI), Royal Bank of Scotland (RBS.L) and Bank of Ireland (BKIR.I) which all lost more than 2 percent.

Shares in RWE and Innogy were up by 6.8 and 4.2 percent respectively, with traders pointing to the possibility of wider consolidation in the sector should a bid materialize.

RWE said on March 14 it aims to generate an EBITDA adjusted for one-offs of between 5.4 billion euros and 5.7 billion euros in 2017, compared with last year's 5.4 billion euros and the 5.2 billion euros forecast by analysts in a Reuters poll.

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Engie Chief Executive Isabelle Kocher is pushing a strategy shift to focus the former French monopoly gas utility more on grids and renewables, but she has given no indication that she wants a transformative deal.

Innogy was spun off from RWE and completed an initial public offering (IPO) in October 2016.

Based on Monday's closing price, Innogy was worth 18.6 billion euros ($19.8 billion), making it Germany's biggest energy company by market valuation.

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"There are no further corporate decision in place in this context".

In response to the report, RWE said in a statement that it does not comment on press speculation, but noted that its supervisory board had decided back in 2015 that the company can in principle reduce its Innogy stake to 51%.

Listed by RWE a year ago in Germany's biggest IPO since 2000, Innogy is an important source of income for RWE.

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