Germany's Scholz calls for all Siemens Energy stakeholders to pitch in

German Chancellor Olaf Scholz said he was confident that talks to come up with billions of euros in guarantees for Siemens Energy would be finalised soon, while calling on all parties, including top shareholder Siemens, to contribute.

German Chancellor Olaf Scholz said he was confident that talks to come up with billions of euros in guarantees for Siemens Energy would be finalised soon, while calling on all parties, including top shareholder Siemens, to contribute. Talks over roughly 15 billion euros ($16 billion) in project-related guarantees became public in late October, sending Siemens Energy's shares to a record low over fears that it may not be able to carry out large projects.

Sources told Reuters earlier this week that Siemens AG , Siemens Energy's top shareholder with a 25.1% stake, was still not willing to agree and supply its former division with guarantees needed to safeguard client pre-payments. Scholz, speaking at the inauguration of an electrolyser plant in Berlin jointly owned by Siemens Energy and Air Liquide , said the government remained in "very constructive and very goal-orientated" talks.

But, in a comment apparently aimed at Siemens AG, he said he expected "that those involved will do their share ... I am confident that we will arrive at a good solution very soon, if all involved will meet their responsibility". Siemens Energy's shares rose as much as 6.7% after Scholz's comments and were up 1.9% at 1422 GMT.

Siemens Energy and Siemens are both scheduled to release full-year results next week, fuelling hopes of a deal by then. The guarantees in question are usually issued by companies and the banks they work with on sizeable projects because industrial firms need to show customers evidence that they can meet certain liabilities during the construction.

Banks, however, have become stricter due to high interest rates, Siemens Energy's deepening wind turbine problems as well as S&P's move in July to downgrade its long-term credit rating to BBB-, just one notch above junk, sources have said. ($1 = 0.9377 euros)