Areva extends Repower offer period, drops condition

Areva extends Repower offer period, drops condition
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First Published: Tue, Apr 17 2007. 03 10 PM IST
Updated: Tue, Apr 17 2007. 03 10 PM IST
Frankfurt: Areva SA, the world’s largest manufacturer of atomic power stations, extended its offer period for German wind-turbine builder Repower Systems AG, gaining extra time to consider topping a bid by Suzlon Energy Ltd.
Areva dropped a requirement that at least 50 % plus one share be tendered, which allows it to stretch the deadline to 4 May from 20 April, the Paris-based company said today. It didn’t announce a higher bid.
Suzlon, run by Indian billionaire Tulsi Tanti, beat Areva’s bid on 10 April with an offer of 150 euros a share. .
Rs.The ball is still in Areva’s court,’’ said Ian Macleod, an analyst at Jefferies International in Paris with a Rs.hold’ rating on Areva shares. Rs.This just extends the offer period.’’
Areva Chief Executive Officer Anne Lauvergeon said on 11 April that the company was still determining whether to raise its bid. The French company chose to remove the offer condition since the change Rs.permits the extension of the study period,’ spokesman Julien Duperray said today by telephone.
Areva already owns 30% of Repower. Suzlon is bidding together with Martifer, a unit of Portuguese builder Mota-Engil SGPS SA that owns a quarter of Repower. Suzlon itself has bought a 7.7% stake in the Hamburg-based wind turbine builder.
Suzlon’s offer beat Areva’s bid of 140 euros a share and is a 77% premium to Repower’s share price on 19 January, the day before Areva announced its initial 105 euros-a-share offer. The Indian company’s latest price values Repower at 1.2 billion euros.
Areva shares fell as much as 13.96 euros, or 1.8 %, to 772.09 euros and were trading at 776.55 euros by 9:44 a.m. in Paris. The stock has gained 38 % so far this year, giving the company a market value of 27.5 billion euros ($37.2 billion).
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First Published: Tue, Apr 17 2007. 03 10 PM IST
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