Iberdrola worried about Siemens Gamesa, seeks changes - report

Spain’s Iberdrola SA (BME:IBE) wants significant changes to be made at the top of wind turbine maker Siemens Gamesa Renewable Energy SA (BME:SGRE) in which it is the second largest shareholder, Reuters reports.

The Spanish utility is unhappy with how German industrial major Siemens (ETR:SIE) manages the wind power business. For this reason, at a board meeting on Friday, Iberdrola representatives have informally asked for changes, two informed sources have told the news agency. One of the insiders commented that consequences in the top management are inevitable after two profit warnings in less than three months.

Earlier this week, Siemens Gamesa revised down its underlying earnings before interest and tax (EBIT) forecast for the fiscal year to the end of September as a result of a write-down of inventories for the US and South African markets. The company is to announce fourth-quarter results on November 6.

In early April, Spanish wind turbine manufacturer Gamesa merged with Siemens’ own wind power division to create the current company. Siemens is the majority owner with a 59% stake and Iberdrola holds an 8% interest, but has a say in some corporate governance matters.

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