German solar deal triggers merger prospects

Robert Bosch GmbH, the world's largest auto parts supplier, said Monday is buying a majority stake in Germany's ersol Solar Energy in a deal worth about $850 million.

The price marked a 63 percent premium to ersol's closing price last week.

It also followed a cut in German state subsidies to solar energy providers that was less severe than earlier feared.

"There has been minimal merger and acquisition (activity) in the photovoltaic manufacturing arena historically, and a deal of this size is certainly one of the largest, if not the largest, in the history of the space," said Raymond James analyst Pavel Molchanov, who added in a client note that "consolidation is likely to accelerate."

Pavel said the valuations of several solar cell makers will likely experience multiple expansions.

Those companies include: Ascent Solar Technologies Inc., which was up 4 cents to $12.45, First Solar Inc., up $4.58 to $260.54, JA Solar Holdings Co. Ltd., up 43, or 2.1 percent, to $21.26, SunPower Corp., up $1.06 to $80.93, Suntech Power Holdings Co. Ltd., up 38 cents to $41.44, and Trina Solar Ltd., up $1.02, or 2.3 percent, to $44.88.