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11 April 2007 - India's Suzlon Energy has raised its bid to buy REpower Systems AG in a deal that values the German wind energy business at €1.2bn ($1.6 bn), topping a rival offer from France's Areva SA.
The new bid is for €150 per REpower share, up 19 per cent from what Suzlon offered earlier in February, the company said in a statement.
Suzlon said it has already bought a 7.7 per cent stake in Hamburg-based REpower at €150 per share and was now offering the same price for the remaining stock.
"The decision to increase the offer was taken after careful analysis of potential synergies which Suzlon can contribute to REpower," Suzlon Chairman Tulsi Tanti said in the statement.
The bidding war comes at a time when growing concerns over global warning and volatility of oil prices are expected to drive demand for wind-power projects worldwide.
Suzlon's new offer is 7 percent higher than Areva's revised bid of €140 a share. Areva, which owns 29.6 per cent of REpower and wants to buy the rest, first offered €105 per share, but revised it after Suzlon joined the race.
It has until April 20 to make another counteroffer, Tanti said. And if it does, the deadline will be shifted for two more weeks and Suzlon will have the option to come with a competing bid.
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