Permira Not Interested in RWE

FRANKFURT (Reuters) – Private equity fund Permira [PERM.UL] is not interested in German utility RWE AG (RWEG.DE: Quote, Profile, Research), a financial source close to the matter said on Thursday, denying market rumours.

Traders earlier said market talk that Permira, Blackstone (BX.N: Quote, Profile, Research) and Warren Buffett were jointly bidding for RWE was boosting RWE shares, which were up 2.4 percent at 83.52 euros at 1201 GMT.

Permira declined to comment, as did RWE.

Five-year credit default swaps on RWE were little changed at 49.5 basis points, a trader in London said.

“I would be very surprised if it's true,” he said. “The company's got a market cap of over 40 billion (euros) ($62.4 billion). It would be a big step for even people like Blackstone or Buffett to take it private.” (Reporting by Stefan Schaaf and Kirsti Knolle in Frankfurt, Amanda Cooper in London; Writing by Eva Kuehnen, editing by Will Waterman)