Suzlon’s improved offer values the Hamburg-based manufacturer at E1.22 billion. This offer exceeds a rival bid from French company Areva, which currently owns 29.6% of REpower, by E10 per share. Suzlon’s renewed offer expires on April 20, 2007.
Tulsi Tanti, chairman and managing director of Suzlon, said: The decision to increase the offer was taken after careful analysis and review of potential synergies which Suzlon can contribute to REpower given our fully integrated business and control over component level technology and its integration with turbine technology.
In addition, Andre Horbach, group CEO of Suzlon, added that the synergies afforded by the acquisition would be an important step in securing a reliable and cost effective supply chain for both companies.
Although Suzlon’s bid is being supported by REpower’s second largest shareholder, Portuguese company Martifer, the BBC has reported that, as Suzlon would have to take on considerable debt in order to finance the acquisition, investors are not so confident about the strategic importance of the move.
