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In this work, spectral estimation techniques are used to exploit baseline diversity of a multichannel interferometric synthetic aperture radar (SAR) system and overcome the layover problem. This problem arises when different height contributions collapse in the same range-azimuth resolution cell, due to the presence of strong terrain slopes or discontinuities in the sensed scene. We propose a multilook approach to counteract the presence of multiplicative noise, which is due to the extended nature of natural targets; to this purpose we extend the RELAX algorithm to the multilook data scenario (M-RELAX). A thorough performance analysis of nonparametric (beamforming and Capon) and parametric (root MUSIC and M-RELAX) techniques is carried out based on Monte Carlo simulations and Cramer-Rao lower bounds (CRLB) calculation. The results suggest the superiority of parametric methods over nonparametric ones.