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Siemens Gamesa shares suspended on report of strategic review

imageStock Markets20 minutes ago (May 18, 2021 05:31AM ET)

(C) Reuters. FILE PHOTO: A model of a wind turbine with the Siemens Gamesa logo is displayed outside the annual general shareholders meeting in Zamudio, Spain, June 20, 2017. REUTERS/Vincent West

MADRID/FRANKFURT (Reuters) -Spain’s stock market regulator suspended trading of shares in Siemens Gamesa on Tuesday after local newspaper Expansion reported that Siemens AG (OTC:SIEGY) had hired banks to conduct a strategic review of the wind turbine maker.

Citing anonymous financial sources, the Spanish newspaper said Siemens AG had hired Morgan Stanley (NYSE:MS) to review options including a possible takeover and de-listing of Siemens Gamesa.

Expansion said Siemens AG had hired the bank through Siemens Energy, which owns 67% of Siemens Gamesa. The conglomerate holds 35% of Siemens Energy, and another 10% via its pension fund.

Siemens has also hired Deutsche Bank (DE:DBKGn) to give an independent valuation, the paper said.

Spokesmen for Siemens Energy and Siemens Gamesa declined to comment, while Siemens AG did not immediately respond to a request for comment. Morgan Stanley and Deutsche Bank did not return emails seeking comment.

Siemens Energy Chief Executive Christian Bruch said earlier this month it was too early to talk about buying out the rest of Siemens Gamesa, but that this would become an issue at some point.

A full takeover would allow the parent to have full control of cash flows and speed up decision-making around divestments and acquisitions because it could bypass minority shareholders, a banker in the sector said.

Siemens Gamesa was formed in 2017 through a merger of Spain’s Gamesa and what was then the wind business of Siemens.

Siemens Energy shares were among the biggest gainers among Germany’s blue-chip stocks in early trade, rising more than 3%. Frankfurt-listed shares of Siemens Gamesa were up 3.5% at 0907 GMT.

Siemens Gamesa shares suspended on report of strategic review

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