Siemens Energy AG’s talks with the German government and main shareholder Siemens AG on billions in loan guarantees are still ongoing with different parties negotiating how the burden will be shared, according to people familiar with the deliberations.

German Chancellor Olaf Scholz yesterday ratcheted up pressure on Siemens, which holds a 25.1% stake in Siemens Energy, saying he’s confident a deal can be reached if the various parties agree to shoulder a sufficient part of the burden.

Siemens said the company was in “very constructive talks to define the best possible solution in the interests of all parties involved.“

Earlier, shares in Siemens Energy jumped as much as 8% after Reuters reported a provisional deal had been reached, without giving additional details.

A solution would end weeks of talks and pave the way for Siemens Energy to win large-scale contracts for electricity grids and gas turbines. The company has been seeking the backing after its credit rating was downgraded in July and Siemens, its former parent, indicated it was no longer willing to help it weather a string of losses at its Gamesa wind-turbine unit.

Talks involved loan guarantees for about €15 billion ($16.1 billion). A spokesman for Siemens Energy and government officials declined to comment.

Read more: Germany Pressures Siemens to Support Troubled Wind-Turbine Maker

One option to shore up the struggling company is the sale of a substantial part of Siemens Energy’s stake in a listed Indian affiliate of Siemens AG, according to people familiar with the matter, confirming a Bloomberg report from October. The holding in Mumbai-listed affiliate Siemens Ltd. is worth about €3.3 billion. A partial stake sale would lower Siemens AG’s potential guarantee contribution, according to the people.

Siemens Energy’s share price has slumped roughly 45% this year, as problems at Gamesa mounted. Faults in thousands of wind turbines have left the company with a repair bill of at least €1.6 billion ($1.7 billion), though the company is still conducting a broad review of the issues to determine a final cost. Siemens Energy now expects a €4.5 billion net loss for the year.

Government officials have said the company is critical for the nation’s transition to renewable energy as it fends off green-technology competition from China.

Read more: Siemens Energy Weighs New Turbine in Bid to End Troubles

--With assistance from Kamil Kowalcze and Petra Sorge.

Author: Wilfried Eckl-Dorna and Michael Nienaber