UPDATE:E.ON CEO Won't Be Available For 2010 Contract Renewal

Utility E.ON AG (EOAN.XE) is on the lookout for a new head following Chief Executive Wulf Bernotat's announcement Wednesday he won't be available for a third term after his contract expires in May 2010.

Bernotat told shareholders at E.ON's annual general meeting in Essen he won't renew his contract next year due to personal reasons, adding he will become 62 next year and that he seeks a "new professional challenge beyond the operating business".

Bernotat has been CEO of Duesseldorf-based E.ON since 2003. His existing contract was extended early in 2007. However, Bernotat's second term was cut to two years instead of the usual five, given that he had reached the company's age limit for CEOs of 60 years.

Under Bernotat leadership E.ON became the world's largest investor-owned utility by market value.

He concluded the period of consolidation and concentration toward a pure energy company, which was initiated by his predecessor and now supervisory board chairman Ulrich Hartmann.

In the last two years Bernotat led a rapid expansion across Europe, buying assets in Italy, Spain, France, Russia and Sweden as well as expanding the company's renewable energies activities.

In 2007 Bernotat planned a EUR40 billion takeover of Spain's Endesa SA (ELE.MC), but lost a bidding war against construction and energy company Acciona SA (ANA.MC) and Italy's Enel Spa (ENEL.MI). In a compromise E.ON acquired certain assets from Endesa and Enel for more than EUR11 billion and dropped its bid for the whole of Endesa.

E.ON Chief Operating Officer Johannes Teyssen is considered to be in a strong position to succeed Bernotat as CEO.

Teyssen has been E.ON executive board member since 2004 and was appointed deputy chief executive in March 2008. At the time, observers speculated that Teyssen's appointment as deputy CEO effectively made him Bernotat's designated successor.

Supervisory board chairman Ulrich Hartmann thanked Bernotat for his services for the company. He added that Bernotat's early notification of his intention to leave the company leaves plenty of time for the supervisory board "to calmly plan the upcoming executive board personnel decisions."

E.ON also Wednesday repeated its earnings outlook for 2009 and 2010, which it lowered in March due to the economic downturn that would weigh on its business through lower power and gas demand.

E.ON shares traded down 2.5%, or EUR0.67 lower, at EUR25.66 at 1201 GMT in a higher overall German market.

Company Web site: www.eon.com

-By Jan Hromadko, Dow Jones Newswires; +49 69 29 725 503; jan.hromadko@dowjones.com

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