Monday, January 3, 2011

Spain's Gamesa may buy majority stake in Suzlon: Sources

Spain's top wind turbine manufacturer Gamesa is likely to pick up majority stake in Suzlon, reports CNBC-TV18 quoting sources.

It is learnt that the deal is likely to value Suzlon at market cap of around USD 3 billion while its current market cap is at around USD 2 billion.

Sources add that the deal will involve payment of non-compete fee to promoters. However, Suzlon has refused to comment stating that it is a market speculation.

Following the report, Suzlon rose more than 5% on the bourses.

Conceived in 1995 with just 20 people, Suzlon is a leading wind power company with over 16,000 people in 25 countries across Americas, Asia, Australia and Europe.

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