News Column

Siemens Shares Wobbly Amid Power Struggle

July 29, 2013
Siemens is in the midst of a power struggle in the executive offices.

German Chancellor Angela Merkel called Monday for an end to the turmoil surrounding the top management of German engineering giant Siemens.

Shares in German engineering giant Siemens turned in an erratic performance Monday ahead of a board meeting this week called to consider replacing the group's current chief executive, Peter Loescher.

Merkel sees Siemens as a flagship of German industry, a spokesman told a regular government briefing.

"That's why it's important to her that this world company gets back into calmer waters," the spokesman said.

He went on to say the chancellor had high regard for Loescher, who has been one of her advisers the last four years.

Siemens' shares opened more than 2 percent higher Monday amid speculation that the group planned to announce on Wednesday that finance chief Joe Kaeser was to take over as head of the company.

Kaeser is "the logical successor," said Commerzbank analyst Ingo-Martin Schachel.

Later in the day, Loescher denied a report in the German daily Sueddeutsche Zeitung that stated he was only prepared to stand down from his post if company chairman Gerhard Cromme also resigned.

"What concerns me is the well-being of Siemens and the 370,000 Siemens employees who are justly proud of their company," Loescher told the Tuesday edition of the daily Bild Zeitung.

After the solid start to trading Monday, shares in the group were up just 0.16 per cent at 79.5 euros (105.32 dollars) as the trading day came to a close.

Siemens' announcement Saturday that its supervisory board would meet to consider the appointment of a new chief executive came after the company issued Thursday its second profit warning this year.

This sent the company's stock plunging by 5.98 per cent to 78.62 euros.

Siemens will release its latest quarterly results on Thursday.

Source: Copyright 2013 dpa Deutsche Presse-Agentur GmbH

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