© Reuters. FILE PHOTO: A model of a wind turbine with the Siemens Gamesa logo is displayed outside the annual general shareholders meeting in Zamudio, Spain, June 20, 2017. REUTERS/Vincent West

MADRID/FRANKFURT (Reuters) -Spain’s stock market regulator suspended trading of shares in Siemens Gamesa on Tuesday after local newspaper Expansion reported that Siemens AG (OTC:) had hired banks to conduct a strategic review of the wind turbine maker.

Citing anonymous financial sources, the Spanish newspaper said Siemens AG had hired Morgan Stanley (NYSE:) to review options including a possible takeover and de-listing of Siemens Gamesa.

Expansion said Siemens AG had hired the bank through Siemens Energy, which owns 67% of Siemens Gamesa. The conglomerate holds 35% of Siemens Energy, and another 10% via its pension fund.

Siemens has also hired Deutsche Bank (DE:) to give an independent valuation, the paper said.

Based on current market value, the 33% stake Siemens Energy not yet owns in Siemens Gamesa is worth 5.7 billion euros ($6.96 billion).

Shares in Siemens Energy rose as much as 4% on the news, while Frankfurt-listed shares of Siemens Gamesa were up 3.5% at 1140 GMT.

Spokesmen for Siemens, Siemens Energy and Siemens Gamesa declined to comment. Morgan Stanley and Deutsche Bank did not return emails seeking comment.

“We would prefer a sell-down to a buy-out, with a reduction in the stake to 50%+1 to fund investment in areas such as hydrogen,” analysts at Citi wrote.

Siemens Energy Chief Executive Christian Bruch said earlier this month it was too early to talk about buying out the rest of Siemens Gamesa, but that this would become an issue at some point.

A full takeover would allow the parent to have full control of cash flows and speed up decision-making around divestments and acquisitions because it could bypass minority shareholders, a banker in the sector said.

Siemens Gamesa was formed in 2017 through a merger of Spain’s Gamesa and what was then the wind business of Siemens.

($1 = 0.8191 euros)

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