Who will buy Vestas?

More unrest amongst the turbine manufacturers this week as Ming Yang was named as the third firm rumoured to be circling Danish turbine manufacturer, Vestas.

The Chinese firm swiftly moved to deny the reports in the Chinese national daily newspaper, Caixin, stating in a Bloomberg report that ‘this is not happening so far’.

The news follows earlier reports in April that Sinovel and Goldwind were said to be preparing a joint takeover bid for the troubled firm.

Regardless, as the largest private wind power manufacturer in China, the move may be a stretch for Ming Yang, especially following the $18.5million loss the firm saw in Q1 2012 and the obvious slow down in the domestic Chinese wind market.

But for Vestas the potential suitors for a takeover must be running out. If Ming Yang, Goldwind and Sinovel have all kicked the tyres and walked away, there can’t be too many other market protagonists who would be interested. The South Korean majors – Hyundai, Doosan and Daewoo may have the balance sheets, but not the market access to make the deal work in the long term.

Takeover rumours and some well-publicised claims that the firm is having to restructure its debt on the orders of its lenders, have meant the Vestas share price continues to yo-yo.

Coupled with the cancellation of its UK factory in Sheerness, the pressure is back on the Danish firm to inspire the confidence of the markets.

And in times where firms that were too big to fail have indeed failed, then this needs to be a priority.

Vestas has maintained a dignified silence throughout, but if it is to remain on a largely even keel, it needs to ensure that the next raft of news from the business is entirely positive.