"Bloomberg" reports that three of Europe’s largest engineering companies - Siemens AG (NYSE: SI; XETRA: SIE), Areva SA (Euronext: CEI), and Alstom SA (LSE: ALS; Euronext: ALO) - are competing for control of Solel Solar Systems Ltd. as demand for renewable energy rises.
"Bloomberg" quotes three sources close to the negotiations as saying that bids for Beit Shemesh-based Solel Solar may be at a company value of $300-400 million. These figures are well above the initial values of $250 million for the company.
Siemens and Alstom's reaching the final stage in the sale process is not a surprise, as they were always considered the leading candidates to take over Solel Solar. The bid by Areva, a global leader for the manufacture of nuclear power plants, which is majority owned by the French government, was unexpected.
Arison Holdings Ltd. subsidiary Shikun u'Binui Holdings Ltd. (Housing and Construction) (TASE: HUCN) is also in the running for Solel Solar. Although it has reached the final stage in the sale process, it is unlikely to win the company, because its bid is lower than the others.
Credit Suisse Group was hired by Solel Solar shareholder Ecofin Ltd. to handle the sale. In January 2008, Ecofin, a London-based investment company, bought a 40% stake in Solel Solar. "Bloomberg" reports that, according to a July 31 regulatory filing, Ecofin owns 63% of Solel Solar.
Published by Globes [online], Israel business news - www.globes-online.com - on September 6, 2009
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