June 5, 2012 / 11:28 AM / 5 years ago

E.ON sees double-digit million euro trading hit

* Company sees low double digit mln euro hit - spokesman

* Internal probe to be concluded in next 2 weeks - source

FRANKFURT, June 5 (Reuters) - E.ON, Germany’s largest utility, could face a low double-digit million euro hit from “irregularities” of a single energy trader, a spokesman said on Tuesday.

The spokesman said internal investigations were ongoing and any involvement of official authorities would depend on the outcome of the investigation.

A source familiar with the matter said the internal investigations would be concluded within the next two weeks.

The company would be able to give a more precise number when it reports second-quarter results in August, the spokesman said, declining to give further details.

Trading businesses have proved a big headache particularly in the financial services industry where some banks have had big losses from bad bets, the latest being U.S. bank J.P. Morgan .

E.ON’s energy trading unit, trades in electricity, carbon, natural gas, oil, coal and freight to manage the firm’s commodity price risks. Energy trading is based in 40 countries and employs more than 1,000 staff.

This year, E.ON merged energy trading with some activities of its former Ruhrgas unit into a new unit known as Optimisation and Trading. (Reporting by Christoph Steitz. Editing by Jane Merriman)

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