Germany’s biggest utility group, EON AG, announced on Wednesday a 50 percent profit drop due to reduced power generation earnings following the closure of its nuclear reactor, and a weakened demand in its gas business. Eon said after the announcement that it will now cut its dividend by a third to €1 a share for 2011 but pointed out the payout will increase to €1.10 for 2012. The group recorded a net loss of €2.219bn in 2011 against a net profit of €5.85bn a year earlier. Net income dropped to almost €2.5bn, still beating a €2.33bn estimate by Bloomberg analysts. EON’s EBITDA fell by 30 percent to €9.293bn but sales grew 22 percent to €113bn. The utilities group has been revamping operations since Chancellor Angela Merkel directed the closure of all nuclear plants in Germany by 2022. Following that EON announced job cuts, a €15bn divestment programme and an extensive expansion scheme into new markets including Brazil.

Russian billionaire Viktor Vekselberg resigned as chairman of Rusal on Tuesday, saying the company’s bad management style, led by CEO Oleg Deripaska, has brought on a debt crisis to the world’s largest aluminium producer. Vekselberg, who has an indirect stake in the company, clashed with Rusal on strategic development issues, human resources policies and matters concerning modernisation of production. Vekselberg said in a statement: “It is with great regret that I have to state that, due to the actions of its management, Rusal is presently facing a deep crisis as a result of which it has in my opinion deteriorated from an international aluminium leader into a company overburdened with debt and entangled in numerous lawsuits and social conflicts.” In a company statement following the resignation Rusal said that it intended to find a replacement for Vekselberg as he failed to attend an annual shareholders’ meeting in Hong Kong in 2011 as well as several live board meetings. Rusal’s Deripaska accused Vekselberg of failing to have carried out his chairman role correctly over the past year, saying he “failed to perform his functions.”

Citigroup has announced late on Sunday it is to increase its China presence to a hundred from the current 47 within two to three years, according to the CEO for Asian operations, Stephen Bird. Doubling the branches will help speed up its drive into China’s credit card business and an imminent securities joint venture. According to Bird, Citigroup has benefited from its endeavours to help Chinese institutions widen their technology and products as it has achieved approval for its own undertakings in the process. The bank bought stakes in Chinese companies in an attempt to position itself among the most influential lenders within the market. But it has proved difficult after China’s government repudiated the attempt by banks to grow their holdings. Citigroup has held a 2.7 percent share in Shanghai Pudong Development Bank, with which it commenced a credit card venture. City has recently acquired its own card license in China, which may now lead to the sale of its stake in Shanghai Pudong Development Bank. Bird also informed the FT it is to launch a securities joint venture in 2012 with China Orient.

The US Treasury Department late on Wednesday reached a deal with insurer AIG to sell off an estimated $6bn in stock in an attempt to gradually sell down the stake it still owns. The Department already cut its stake to 77 percent when it sold 200 million shares last May. Shares are now being offered at $29 apiece. Under the agreement, AIG has to pay off over $8.5bn in obligations. AIG’s CEO Robert Benmosche said in a statement: “The people of AIG have achieved another significant milestone in their progress toward the goal that American taxpayers recoup their entire investment in AIG at a profit.”

Greece increased the pressure on its creditors late on Tuesday, as it looks to secure a bond swap deal that will help write off an estimated 53.5 percent of the country’s privately held debt. Athens informed creditors that it is reassessing its options concerning non-payment, saying it will default on any bondholders unwilling to participate in the €206bn debt restructuring. Private creditors in Greece now have until Thursday to decide. New legislation has already been passed to force bondholders to participate. Greek banks, which hold up to €45bn of the sovereign bonds already agreed to take part in the debt swap deal, Greece’s finance minister Evangelos Venizelos said. France’s Societe Generale and Italy’s UniCredit also joined the participating Greek banks on Tuesday.