UPDATE 1-Conergy aims to raise $713 million in capital hike

(Adds details, background, analyst comment, share price)

ZURICH, July 17 (Reuters) - Stricken German solar energy company Conergy (CGYG.DE) plans to raise about 450 million euros ($713.3 million) in a capital increase to pay back loans and to strengthen its balance sheet, it said on Thursday.

The capital hike is more than the 250 million euros Conergy had initially aimed for and also exceeds the company's market capitalisation of about 330 million euros.

"The chance of success is very slim," an analyst who asked not to be named said. "The dilution will be massive," the analyst said, adding this would make the measure less attractive to shareholders.

Conergy shares rose 6.3 percent to 10.35 euros at 1359 GMT and traders said some investors may be covering their short positions.

Conergy, which is scaling back non-core operations to focus on photovoltaic activities, had to raise capital early this year to escape a liquidity squeeze after it found it could not generate cash fast enough to finance its ambitious growth plans.

With the fresh capital, Conergy now plans to pay back a bridge loan of 240 million euros and finance instalments for a syndicated loan of 600 million euros, it said.

The subscription ratio and price will be set shortly and Credit Suisse and Dresdner Kleinwort will prepare the capital measure, which is not yet fully underwritten, Conergy said.

Major shareholders Leemaster, held by Otto Happel, and Athos Service, held by the Struengmann family, have committed to invest 125 million euro in the capital hike.