RWE eyes Gazprom as possible investor

FRANKFURT: The CEO of German utility RWE is considering bringing Russia's Gazprom on board as an investor as it seeks ways to bolster its balance sheet against declining earnings, according to a report.

RWE Chief Executive Juergen Grossmann told confidantes he could even see Gazprom as an anchor investor, magazine Spiegel said without citing sources.

RWE is currently reviewing its strategy after Germany decided to withdraw from nuclear power. Grossman said on Thursday a capital increase, merger with a peer and more disposals were among options to keep rating agencies from downgrading its debt further.

Gazprom said in a statement on its website the two companies had met on Friday to "discuss the prospects for current and future cooperation" without providing further details.

Gazprom on Saturday declined to comment on a possible tie-up and said the company had nothing to add to the press release.

A spokeswoman for RWE said the meeting was about gas contracts but declined to comment on investment by Gazprom in RWE.

Copyright Reuters, 2010