FRANKFURT (Reuters) – Osram Licht (OSRn.DE) has been approached by Austria’s AMS (AMS.VI) to discuss a non-binding 38.50 euros ($43.32) per share takeover offer, it said on Monday, sparking a potential bidding war for the German lighting company.

The AMS offer comes after Osram this month backed an approach from private equity firms Bain and Carlyle at 35 euros per share.

Osram’s management cast doubt on the prospects of the AMS bid, citing concerns over its ability to fund the deal.

“On the basis of the information as per today, the Managing Board of Osram Licht AG does regard the probability of this transaction materializing as rather low,” Osram said in a statement on Monday.

Osram said AMS, an Austrian technology company specialising in sensors and lighting, had indicated that it could fund a bid thanks to a temporary 4.2 billion euro ($4.7 billion) bridging loan facility and plans for a capital increase.

Osram’s management said it saw “substantial uncertainties” around the ability of AMS, which has a market value of around 3 billion euros, to fund a takeover of Osram, which is currently valued at 3.2 billion euros.

“Currently, neither the bridge-loan nor the equity portion are supported by binding commitments; any other coverage of operational funding requirements has not been clarified,” Osram said.

An AMS representative was not immediately available for comment.

Osram, a technology group that builds microchips, digital lighting systems and sensors for the auto industry, has sparked bidding interest because of its potential as a supplier for connected and autonomous cars.

A spokesman for the Bain, Carlyle bidder consortium declined to comment.

Osram shares closed up 0.1 percent at 33.14 euros in Frankfurt trading on Monday.

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