E.ON Focus on Grids in $20 Billion Sale to Lure Funds

E.ON AG is likely to focus on selling power grids as it divests 15 billion euros ($20 billion) of assets, luring pension funds hunting for the steady, inflation-protected returns electricity lines offer.

E.ON “turned quite negative on regulated assets -- there are probably a whole lot of grids under review,” said Christian Kleindienst, an analyst at UniCredit SpA in Munich. “Grids need a high level of investment so selling them can help reduce the amount of spending E.ON will have to do in years to come.”