French atomic power giant, Areva SA on Thursday raised its bid for Germany's REpower Systems AG to 1.14 billion euro, outbidding Indian wind power firm Suzlon Energy's 1.023 billion euro offer made last month.
Areva said in a statement today that it was sweetening its offer for shares it did not already own, to 140 euro per share from the previous offer price of 105 euro, representing a 33.3 per cent increase.
The revised bid from Areva offers a 11.1 per cent premium to Suzlon's offer of 126 euro.
Areva said its offer was valid till April 20, subject to further revision. The company has become a strategic investor in REpower since 2005 and its offer for further stake represents its commitment to the business and management of the German firm. Earlier this month, Suzlon Energy had received approval from the German Federal Financial Supervisory Authority (BaFin) for its offer to acquire REpower.
According to Suzlon's offer, the shareholders of REpower could tender their shares from March 2, 2007 onward till April 20, 2007. Prior to Areva's increased offer, Suzlon had said, with support from REpower's second largest shareholder Martifer Group, it had placed a 20 per cent higher bid than that of the French major.
Areva, the major shareholder of REpower Systems, already holds nearly 30 per cent stake in the company, while Martifer holds 25.4 per cent stake. The acquisition would be effected through Suzlon Windenergie GmbH, a joint venture company in which Suzlon and Martifer hold 75:25 stake. The company was formed for the purpose of the proposed REpower takeover.
Areva said in a statement today that it was sweetening its offer for shares it did not already own, to 140 euro per share from the previous offer price of 105 euro, representing a 33.3 per cent increase.
The revised bid from Areva offers a 11.1 per cent premium to Suzlon's offer of 126 euro.
Areva said its offer was valid till April 20, subject to further revision. The company has become a strategic investor in REpower since 2005 and its offer for further stake represents its commitment to the business and management of the German firm. Earlier this month, Suzlon Energy had received approval from the German Federal Financial Supervisory Authority (BaFin) for its offer to acquire REpower.
According to Suzlon's offer, the shareholders of REpower could tender their shares from March 2, 2007 onward till April 20, 2007. Prior to Areva's increased offer, Suzlon had said, with support from REpower's second largest shareholder Martifer Group, it had placed a 20 per cent higher bid than that of the French major.
Areva, the major shareholder of REpower Systems, already holds nearly 30 per cent stake in the company, while Martifer holds 25.4 per cent stake. The acquisition would be effected through Suzlon Windenergie GmbH, a joint venture company in which Suzlon and Martifer hold 75:25 stake. The company was formed for the purpose of the proposed REpower takeover.
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