Vestas in Talks With Mitsubishi on Strategic Pact

Vestas Wind Systems A/S said Tuesday that it is in talks with Japanese industrial conglomerate Mitsubishi Heavy Industries Ltd. about a strategic tie-up that could secure the long-term future of the financially troubled Danish wind-turbine maker.

Vestas, the world's largest manufacturer of wind turbines, has been struggling with steep losses and a tight financial situation, prompting speculation in the market of a company sale or a dilutive issuance of new shares.

The shares jumped 19% Tuesday after news of the Mitsubishi talks, with analysts saying that the project could help the company navigate its way back to profitability.

"No matter what the deal contains, it will surely include an injection of capital to Vestas," Alm. Brand Markets analyst Michael Friis Joergensen said.

Vestas fell deep in the red in 2011, when massive overcapacity, excessive costs and budget overruns in the development of a new turbine forced it to issue two profit warnings, helping send the share price lower.

Comments (0)

This post does not have any comments. Be the first to leave a comment below.


Post A Comment

You must be logged in before you can post a comment. Login now.

Featured Product

Sierra Instruments, Inc.- InnovaMass. Reinvented.

Sierra Instruments, Inc.- InnovaMass. Reinvented.

Sierra was the first to introduce a combination volumetric vortex and multivariable mass flow meter in 1997. Today, Sierra's completely redesigned InnovaMass® iSeries™ 240i/241i builds on two decades of success measuring five process variables for gas, liquid and steam with one connection. Now, with the latest hyper-fast microprocessors, robust software applications, field diagnostic and adjustment capability, and a new state-of-the-art flow calibration facility, Sierra's vortex iSeries delivers precision, performance, and application flexibility never before possible.