Bloomberg News earlier also reported, citing unnamed people with knowledge of the matter, the unit, Senvion SE, had drawn interest from Chinese companies and a large buyout fund. It did not name the potential bidders.
"This rumour of stake sale are baseless and false and speculative in nature," a Suzlon spokesman said in an emailed statement, in response to Reuters' request for comment on the news report.
Suzlon, which has been under pressure in the last few years from a slowdown in global turbine sales and its debt pile, had to restructure $1.8 billion debt after defaulting on a $200 million convertible bond redemption in 2012.
Senvion, formerly known as REpower Systems SE, posted 1.8 billion euros ($2.13 billion) in revenue in the fiscal year ended March 2014, down 19 per cent from a year earlier, according to information available on the Indian parent's website.
Suzlon will pursue listing of Senvion if it cannot agree on deal terms with potential buyers, the Bloomberg report said. ($1 = 0.8460 euros)
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