E.ON shares soar in Frankfurt on spin-off news
Shares in German power giant E.ON soared more than 6.0 percent on the Frankfurt stock exchange on Monday on the group's plans to spin off its conventional energy operations and focus on renewables.
In early trade, E.ON shares rocketed by 6.3 percent to an intraday high of 15.15 euros in a stable to slightly softer market.
The power supplier had announced on Sunday that it plans to "carve out its conventional upstream and midstream business -- conventional power generation, global energy trading, and exploration and production) -- and spin off a majority of it to E.ON shareholders and list the shares on the stock market in 2016."
"E.ON will focus on renewables, distribution networks, and customer solutions," the group said in a statement.
"We are convinced that it's necessary to respond to dramatically altered global energy markets, technical innovation, and more diverse customer expectations with a bold new beginning," said chief executive Werner Wenning.
"E.ON's existing broad business model can no longer properly address these new challenges. Therefore, we want to set up our business significantly differently."
© 2014 AFP