Suzlon to reschedule stake purchase in REpower

Shares of Suzlon rallied after the company announced that it was in talks with Martifer to set a new payment schedule for buying its 22.4% stake in Germany's REpower Systems. "Suzlon and Martifer are currently in discussions to arrive at a mutually acceptable payment schedule," Ahmedabad-based Suzlon and Martifer said in a joint statement. Suzlon had agreed to complete the purchase of Martifer's stake in REpower for €270mn (US$344mn) by Dec. 15. The Indian company has provided Martifer with a bank guarantee valid until May 2009. Suzlon plans to use its own cash for the purchase and may raise some debt to buy the stake, Chairman Tulsi Tanti said last week. Suzlon last month suspended a rights offer to raise Rs18bn to buy the additional stake in REpower after a slump in stock markets. It owns 66% of REpower and 89% of the voting rights in the German company, including those of Martifer. Meanwhile, a financial newspaper said that Suzlon might face legal action from lenders if it goes ahead with the acquisition of balance stake of Martifer in REpower.