Renewable energy major, Suzlon Energy has dismissed media reports that French power giant, Alstom is aiming to acquire its subsidiary REpower Systems.

Suzlon said that the reports indication a possible takeover of its unit by Alstom is entirely speculative. A report in the FT Deutschland claimed that Alstom has initiated discussions with the Indian company and has been granted exclusive right to access performance data of he unit.

The repot also said that Suzlon might be planning to offer the unit for about $2 billion. Suzlon had acquired REpower Systems after prevailing in an acquisition battle with another French power major, Areva in 2007. The acquisition had made Suzlon one of the biggest wind turbine players in the world.

The company had acquired a 75 per cent stake in REpower for _1.35 billion and alter increased its holding to 100 per cent in the company, which now operates as its subsidiary. According to analysts, the acquisition resulted in a debt mountain for the company. Suzlon's total debt amounted to Rs. 11,790 crore on December 31 in 2011 while it had a cash balance of Rs1,915 crore.

The company might be able to reduce its debt by selling its stake in the company. However, the unit not only made it a big player in the industry but also allows the company to have a strong presence in the global offshore market.