Top PNE shareholder calls Morgan Stanley offer completely inadequate

FRANKFURT (Reuters) - A top shareholder in German wind energy project developer PNE PNEGn.DE has called a non-binding bid from an infrastructure fund run by Morgan Stanley MS.N "completely inadequate", a letter seen by Reuters on Wednesday said.

PNE late on Monday said it was in talks with Morgan Stanley Infrastructure Partners that could result in a possible takeover at a price of 3.50-3.80 euros per share, which would value the group at up to 295 million euros ($329 million).

That would be a premium of as much as 25% on Monday’s closing price. Shares in PNE, which are up 44% year-to-date, closed up 2.6% at 3.50 euros on Wednesday.

ENKRAFT Capital - a fund and top 10 shareholder of PNE with a stake of about 2% - said the offer did not take into account the group’s strong onshore wind portfolio, saying it was also below the value of the group’s current portfolio.

“On the basis of your own concrete projections for the current business year as well as the positive development of your long-term value drivers that was conveyed in your investor communication the offer is absolutely inadequate,” ENKRAFT Capital said in a letter to PNE’s CEO seen by Reuters.

ENKRAFT and PNE could not be immediately reached for comment.

PNE’s first-half earnings before interest and tax more than tripled to 12.9 million euros. It expects full-year EBIT of 15-20 million euros.

PNE's investors also include activist fund Active Ownership Capital, which had been a shareholder in German drugmaker Stada STAGn.D before it was taken over by Bain Capital and Cinven.

Reporting by Christoph Steitz; editing by David Evans