Suzlon Energy Makes Offer to Buy REpower

BERLIN (AP) -- India's Suzlon Energy Ltd. said Friday it is making an offer to buy REpower Systems AG in a deal that values the German wind energy business at euro1.02 billion (US$1.3 billion).

The offer is for euro126 (US$163.9) per REpower share, a premium of 76 percent over the average share price in the past three months, Suzlon said in a statement.

Suzlon's offer tops that made by France's Areva Group earlier this week. Areva offered to buy REpower for euro105 (US$136) a share, valuing the company at about euro850 million (US$1.1 billion).

Suzlon is making the offer for REpower in combination with Martifer, the German company's second-largest shareholder. Suzlon will provide 75 percent of the capital for the acquisition and Martifer the rest.

"A combination of Suzlon and REpower would be uniquely positioned to establish sustainable global market leadership in the wind energy industry," said Tulsi Tanti, chairman of Suzlon Energy.

REpower shares surged 27 percent to euro143.43 (US$186.7) in Frankfurt.