“Power cut”
Capital
One quarter of ailing energy utility RWE is in the hands of towns and councils which are dependent on its dividend, an article in Capital says. The shares of RWE have lost 80 percent of their value since 2010 and the dividend has been cut, making these communities wonder what to do with their shares in RWE. The involvement of the towns’ treasuries is greater than that of private investors, write Christian Schütte and Thomas Steinmann. And because their shares are organised in a holding, quick termination is not possible. Those who bide their time do not have much to lose anymore, the authors say. RWE has promised that between 70 and 80 percent of the new subsidiary Innogy will be paid as dividends.
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