Will Warren Buffett buy China's bankrupt Suntech solar company?

Suntech stock has rallied on rumors that Warren Buffet may buy the bankrupt Chinese solar company. No one’s quite sure why Warren Buffett might want to buy Suntech, Alic writes, and there has been no confirmation from MidAmerican Holdings that any deal is in the works.

By , Guest blogger

  • close
    Berkshire Hathaway Chairman Warren Buffett attends his company's annual meeting in Omaha, Neb. Suntech stock rose as much as 28 percent after a Hong Kong news service said Buffett’s MidAmerican Energy Holdings Co. might buy the Chinese manufacturer.
    View Caption

After filing for bankruptcy and seeing its stock fall 40% when it default on $541 million in bonds, Chinese equity Suntech Power Holdings Co. (STP) has rallied on rumors that Warren Buffett may buy the company.

Suntech’s rally brought other languishing Chinese solar companies along with it at it rose 0.4% to 89.44 at the close of trading in New York on 8 April. According to Bloomberg, after falling 40% following the default, Suntech rose as much as 28% after a Hong Kong news service said Buffett’s MidAmerican Energy Holdings Co. might buy the Chinese manufacturer.

No one’s quite sure why Buffett might want to buy Suntech, with all the debt he would inherit at a time when solar prices are low. There has been no confirmation from MidAmerican Holdings that any deal is in the works. (Related article: Solar Industry Finally Producing More Energy than it Consumes)

Recommended: Opinion 8 steps to US energy security

Chinese lenders signed a bankruptcy petition for Suntech over the company’s debt in excess of $2.2 billion. Suntech continues to produce solar panels, however, further compounding the oversupply problem and forcing more drops in prices.

Solar stocks are extremely volatile right now and unable to deal with the combination of oversupply and declining demand at a time when government subsidies are being slashed.

 

Original source: http://oilprice.com/Alternative-Energy/Solar-Energy/Buffett-Rumor-Boosts-Beleaguered-Suntech.html

The Christian Science Monitor has assembled a diverse group of the best energy bloggers out there. Our guest bloggers are not employed or directed by the Monitor and the views expressed are the bloggers' own, as is responsibility for the content of their blogs. To contact us about a blogger, click here. To add or view a comment on a guest blog, please go to the blogger's own site by clicking on the link in the blog description box above.

Share this story:
 
 
Make a Difference
Inspired? Here are some ways to make a difference on this issue.
Follow Stories Like This
Get the Monitor stories you care about delivered to your inbox.
 

We want to hear, did we miss an angle we should have covered? Should we come back to this topic? Or just give us a rating for this story. We want to hear from you.

Loading...

Loading...

Loading...