European groups fear derivatives clampdown-FT

LONDON, Oct 7 (Reuters) - Some of Europe's biggest industrial companies may need to raise tens of billions of euros because of a proposed regulatory crackdown on "over-the-counter" derivatives, The Financial Times reported on Wednesday.
E.ON (EONGn.DE), Europe's largest utility group, said it could have to raise about 7.5 billion euros ($11.05 billion) in new credit lines or extra cash reserves if proposals from the European Commission were passed, the FT reported.
"It will have a big impact ... We were very surprised by the proposals, as using derivatives is just a normal part of hedging business risk," Verena Volpert, head of finance at Eon, told the FT.
The FT also said Siemens (SIEGn.DE) would need more than 1 billion euros in new credit lines or cash.
Regulators in the United States and Brussels are insisting that OTC derivatives be shifted to formal exchanges and processed through clearing houses. Non-financial companies fear this would oblige them to set aside extra cash to guarantee those trades, the FT said.
E.ON and Siemens could not be immediately reached for comment. ($1=.6788 Euro) ($1=.6276 Pound)
(Reporting by Jon Carter; Editing by Gary Hill)
(jon.carter@thomsonreuters.com; +44 (0) 207 542 9631))