Date:26/05/2007 URL: http://www.thehindubusinessline.com/2007/05/26/stories/2007052602180200.htm

What next for Suzlon?

D. Murali

Chennai May 25 As was widely expected, Suzlon of India won the REpower race after Areva, the French energy major, abandoned the takeover fray for the German wind-energy company.

"The turnover battle is over," says Dr Michael I. Fischer through an email to Business Line on the morning after the winds blew over the bidding tussle. He is the Munich-based partner of Reed Smith Richards Butler LLP (www.reedsmith.com) , an international law firm headquartered in London.

Reportedly, Areva is to cooperate with Suzlon Energy, becoming the latter's preferred supplier. "Also, they say that Areva and Suzlon agreed that in case of Areva's exit from REpower, Areva is assured of a guaranteed profit of EUR 350 million," points out Dr Fischer.

"What next?" we ask him. "According to Sec. 23 para 1 WpÜG (Wertpapiererwerbs- und Übernahmegesetz, the German Securities Takeover Act) both bidders must publish without undue delay following the expiration of the further acceptance period among others the total number of all shares in the target company, those belonging to them or those to persons acting in concert, each including affiliates and the respective voting rights," explains Dr Fischer. "Also, the number of shares in the target company and the voting rights which result from received acceptances must be reported."

Hence, despite the fact that the bidders apparently have found an amicable solution and have settled the dispute of the last few weeks and months, it will remain of interest how the future majority situation with REpower will look, adds Dr Fischer.