Uncertainty looms as REpower bids expire

The ambitions of Indian wind turbine maker Suzlon to acquire German turbine company REpower may be thwarted if stakeholders of REpower do not tender their shares by the end of market hours in Hamburg by midnight of May 24.

The 9.67 per cent drop in REpower share prices on XETRA, the electronic trading system of the Frankfurt Stock Exchange, indicated the possibility of such an event, analysts said.

The other contender in the game, French nuclear power company Areva, might meet the same fate. Both Suzlon and Areva might be left with majority stakes in REpower instead of a much sought-after acquisition.

REpower shareholders have time till midnight of May 24 to tender their shares in favour of either company if they support the takeover.

Industry experts, however, feel that the bidding war would end in a draw where Areva would hold onto its 30.17 per cent stake and Suzlon would participate in REpower management with 30.73 per cent stake, along with Portuguese company Martifer.

REpower share prices fell to €150.40 on XETRA at 5:02 in the afternoon, Central European Time (CET) on May 24, 2007. Analysts felt the sharp drop was the result of Areva not revising its offer price of €140.

Suzlon's offer of €150 for REpower shares values the German company at €1.22 billion.

Earlier, Suzlon Chief Managing Director Tulsi Tanti had said that in case his company failed to acquire REpower, Suzlon would hold onto its stake in the German company.

Suzlon's stock prices went up marginally to close at Rs 1,158 today on the BSE.