Indian unit, UPDATE

ABB plans to increase its stake in Indian supplementary in an agreement worth up to $ 965 000 000, a move that will make stronger its position in the rapidly growing Indian market. Seller of power gear, energy and oil and Gas Company, said Monday it planned to increase its stake to 75 percent from 52 percent and offered shareholders 900 rupees ($ 19.7) per share - a premium of around 34 percent to Friday's final price. The news lifted shares of ABB Ltd India rose 22.5 percent, but shares in ABB slipped 1.6 percent in 0903 GMT, underperforming the STOXX 600 Industrial Goods and Services index, and some analysts say that the accord was fairly expensive. "ABB will pay three times the sales for the greater than before interest in India, which is not cheap, but probably justified by its growth potential," Julius Baer said in a report. The Swiss Group tapped its war chest earlier this month to buy U.S.