Theolia SA, the French wind-power company part-owned by General Electric Co., dropped the most in more than five years in Paris trading after abandoning financial and operational targets.

Theolia fell as much as 1.39 euros, or 27 percent, to 3.83 euros, the biggest intraday decline since June 2003. The stock traded at 3.88 euros as of 11:45 a.m. local time, valuing the Aix en Provence-based company at 149.9 million euros ($188.9 million).

"Theolia is getting short of cash,'' Exane BNP Paribas analyst Yohann Terry, who has an "underperform'' rating on the shares, said today in a report. "We believe it will be difficult for the company to create significant value'' from its pipeline of wind-power projects.

Interim Chief Executive Officer Marc van't Noordende has scrapped earnings and output targets and reversed a strategy announced this year to keep more wind capacity. He plans to slash jobs, sell assets and cut costs and has canceled a project to list the company's emerging-markets division.

"We are in a traditional growth crisis,'' van't Noordende said in a Webcast presentation. "Right now the priority is to come clean and start 2009 with a clean slate.''

The directors lack the budgetary and accounting tools to manage a company of Theolia's size and must make generating cash a priority, he said, adding that "a development company that can't bring new wind farms to power grids has issues to deal with.''

Share Decline

In September, Theolia announced a strategy to retain and operate wind-power installations to benefit from higher demand for electricity from renewable-energy sources. The shares have since tumbled on concern that the company won't be able to finance debt as it seeks cash to build and run more wind parks.

"Given the ongoing restructuring and potential large impact of one-offs, the company is not in a position to confirm its earlier 2008'' target for earnings before interest, tax, depreciation and amortization, Theolia said yesterday in an e- mailed statement. ``The earlier stated 2009-2011 megawatt targets cannot be maintained in the current financial environment.''

In September, Theolia cut its 2008 Ebitda outlook to "a minimum'' of 20 million euros from an earlier forecast of 55 million to 65 million euros, saying it would sell less wind capacity.

"We need ample financial means which today we don't have,'' van't Noordende said, referring to past plans for growth. "We won't focus any more on acquisition growth.''

Free Cash

Theolia's unaudited cash position sank to 95 million euros at the end of October from 162 million euros on June 30 and 326 million euros at the end of 2007, according to the statement. Its ``free cash'' position, which is neither "pledged nor trapped in project service companies or subsidiaries,'' totals 14 million euros and will end the year at 10 million to 40 million euros.

In order to generate cash, Theolia has `"esumed efforts to sell'' wind farms in Germany and possibly other countries and is cutting staff at headquarters by almost half, according to the statement.

The company yesterday announced the sale of a 55.5-megawatt wind farm in the German state of Saxony-Anhalt to Meinl International Power Ltd. for 81 million euros.

On Sept. 29, Theolia replaced co-founder Jean-Marie Santander with van't Noordende as interim CEO and named Eric Peugeot as chairman. Santander had held both positions.

Of the 12 analysts tracked by Bloomberg who follow Theolia, five recommend selling the stock, four recommend holding it and three have a "buy'' rating on the shares. General Electric has a stake of about 17 percent in the company.