REpower chief says Suzlon-Areva takeover tussle is wide open

Mar 21, 2007, 18:23 GMT

Frankfurt - A takeover battle between Asia's biggest builder of wind generators, Suzlon, and Areva, one of the world's top nuclear technology companies, remains wide open, according to the chief executive of REpower, the German company that both covet.

Fritz Vahrenholt said Wednesday at a news conference in Frankfurt: 'Both bidders are attractive from our point of view. Both could help us grow.'

Areva posted the top bid of 140 euros per share, after Suzlon offered 126 euros per share for REpower, which builds wind farms.

Vahrenholt said anything could happen, even an agreement between Areva and Suzlon to share ownership.

'For us, it would be best if both could bring us their strengths,' he added.

On Tuesday REpower's management and board commended the Areva bid as best to shareholders. Areva of France has raised its stake beyond 30 per cent and must offer all outstanding shareholders the last price it paid, 140 euros per share, under stockmarket rules.

Vahrenholt added that it would not be in REpower's interest for the struggle to continue long term, adding that the business itself did not particularly benefit from the huge sum being offered to shareholders.

'Areva's attraction is that it is a big company with considerable financial resources,' he said.

Martifer Group, a Portuguese company that owns 25 per cent of REpower, has teamed with Suzlon for the rival bid. Vahrenholt said a merger with Suzlon would secure access for REpower to scarce components such as gearboxes and rotor blades.

REpower 2006 emerged from the red last year and is expected to achieve sales this year of 650 million euros and next year of 900 million euros. Its earnings last year were 12.2 million euros, Vahrenholt said.