The Hindu Business Line : Areva offers more than Suzlon for German turbine co

Mumbai March 15 The race is hotting up for German wind turbine company REpower Systems, as French atomic power station maker Areva increased its offer to 140 a share on Thursday.

This development in Paris is being closely watched by Ahmedabad-based Suzlon Energy, which had bid for REpower last month at 126 a share.

Areva's initial offer for REpower was 105 a share.

Suzlon Energy is awaiting detailed information on the increased offer, said Mr Tulsi Tanti, Chairman.

"We have noted Areva's offer and are awaiting further details, which we will evaluate, and then issue our response," said an agency report quoting him.

By upping its offer, Areva increases its representation in REpower to over 30 per cent of its share capital, further raising the stake for its Indian competitor.

Areva has been a strategic investor in REpower Systems since 2005.

"The improved offer price of 140 in cash for each REpower share values REpower at a total equity value of 1,137 million and represents a premium of 11.1 per cent to Suzlon Windenergie GmbH's offer published on February 28, 2007," the company said.

This also represents a premium of 95.9 per cent to the three-month average weighted share price prior to Areva's announcement of its intention to launch a voluntary public tender offer on January 22, 2007.

The offer period ends on April 20, unless extended.

A new special purpose vehicle had been formed for the acquisition, with Suzlon holding 75 per cent and Martifer 25 per cent.

The combination of REpower and Suzlon will establish sustainable global market leadership in the wind energy industry, with good research capabilities and an integrated supply chain, the company management had said.

The Suzlon scrip fell to Rs 1,019.70 on the BSE on Thursday from yesterday's close of Rs 1,045.60.

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