Siemens CEO Seeks to Ease Tensions With Iberdrola
April 04 2018 - 12:01PM
Dow Jones News
By Nathan Allen
Siemens AG's (SIE.XE) chief executive reaffirmed the German
company's support for Siemens Gamesa Renewable Energy SA's
(SGRE.MC) management at a news conference Wednesday, amid tensions
with minority shareholder Iberdrola SA (IBE.MC).
"Of course, the first year of Siemens Gamesa was not exactly
how...we had originally imagined it," Siemens CEO Joe Kaeser
said.
Siemens Gamesa was formed a year ago through the merger of
Spain's Gamesa with Siemens's wind-power division. The energy
company has since released two profit warnings and said it would
cut around 6,000 jobs--more than 20% of its workforce--in an effort
to shore up profitability.
Siemens holds a 59% stake in Siemens Gamesa, and Iberdrola holds
around 8.1%. Iberdrola's Chief Executive Ignacio Galan has said he
wasn't happy with Siemens Gamesa's performance, particularly the
precipitous drop in the company's share price since the merger.
Representatives from Iberdrola recently requested the
introduction of two items to the agenda of Siemens Gamesa's annual
general meeting relating to the protection of minority shareholders
and a guarantee that the company's headquarters would remain in
Spain.
"SGRE has been built to last--for a long term and successful
future--for a future in Spain," Mr. Kaeser said Wednesday.
Write to Nathan Allen at nathan.allen@dowjones.com
(END) Dow Jones Newswires
April 04, 2018 11:46 ET (15:46 GMT)
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