The Hindu Business Line : Suzlon, Areva war for REpower in final stage

Mumbai May 24 The battle between Suzlon Energy Ltd, the world's fifth-largest wind turbine maker, and French multinational conglomerate Areva has reached the final stage for gaining control of REpower, a German wind power company.

The deadline for counter offer to the revised Suzlon bid expires today.

A Suzlon spokesperson said after the closing of German market that the process of tendering of shares will continue till 11 p.m. local time (2.30 a.m. IST) and the highest bidder will have to pay the bid price.

Suzlon has made an offer of € 1.2 billion ($1.6 billion) for 100 per cent stake in REpower, which translates into € 150 per share.

On the Frankfurt stock exchange the scrip was marked down sharply (8.76 per cent) from the previous day's close to end at € 152 - closer to the Suzlon bid.

Industry sources said that as a large portion of REpower's shares are with the hedge funds, the bidders would have to approach the funds and pay the price quoted by them for the acquisition.

The price at which bidders buy the shares would become the new bid price.

On February 9, Suzlon made its first offer of € 126 per share, which was 20 per cent higher than Areva's offer of € 105.

The bid war escalated with Areva making an offer of € 140 on March 15.

Suzlon made a counter offer of € 150 of April 10.

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