Suzlon Energy, India's largest producer of wind turbines, on Friday announced a Euro 1.2 billion ($1.33 billion or nearly Rs 5,700 crore) offer to acquire Germany's third-largest wind power company, Repower Systems AG, outbidding an offer made by French nuclear-reactor maker Areva SA.

Suzlon made an offer of Euro 126 a share, 20 per cent higher than Areva's bid of Euro 105 a share made on February 5. Areva already owns a 30 per cent stake in Repower.

The Areva approach depends on its gaining a stake of more than 50 per cent. The Repower stock rose as much as 29 per cent, suggesting investors suspect that Paris-based Areva may sweeten its bid.

Industry analysts said Areva might come out with a revised offer to outbid Suzlon's attempt to acquire Repower.

Share prices of Repower have been hovering at �145 on the Frankfurt Stock Exchange, indicating that Suzlon's offer of �126 a share might not receive good response from shareholders.

Suzlon's approach coincides with a global surge in wind-power projects as governments seek to cut carbon emissions linked to global warming and reduce their dependence on oil.

Suzlon's bid is being made in partnership with Martifer, a unit of Portuguese builder Mota-Engil SGPS SA that already owns a quarter of Repower. The offer doesn't require any minimum percentage of the German company's shares. However, Suzlon is financing the acquisition alone.

Speaking to reporters through a teleconference, Suzlon Chairman and Managing Director Tulsi Tanti said, "It is our goal to establish a top three presence in Asia, the Americas and Europe."

If it manages to bag Repower, Suzlon's share in the global wind energy market will rise from 11 per cent to almost 15 per cent.

Tanti said Suzlon eventually planned to acquire 100 per cent in Repower. He said Suzlon had a call option on Martifer's stake in both Repower and the SPV for a two-year period.

The acquisition would be financed by Suzlon's internal accruals and a long term debt. Suzlon is being advised on the acquisition by Yes Bank and ABN-AMRO.

The German company has operations in France and elsewhere in Europe and is planning to expand in China, India and North America.