Buffett denies Suntech purchase rumors


Troubled manufacturer Suntech’s shares climbed 28% on April 9 on a rumor Buffett was interested in purchasing the insolvency-hit solar giant. News of the apparent interest came from an anonymous source in a report by a news agency owned by the Hong Kong Economic Times, and divulged by Bloomberg.

Earlier this year, Warren Buffett’s MidAmerican Energy Holdings subsidiary, MidAmerican, acquired a series of photovoltaic projects in California, totaling 579 MW, for between €1.5 billion and €1.9 billion.

Meanwhile, the China-based company also announced on April 9 that it has six months to avoid delisting under New York Stock Exchange (NYSE) rules. A warning notice was sent out, because the company’s closing share price was less than $1 for a 30-day trading period up to April 4.

Earlier this month, Suntech released preliminary, unaudited, financial figures for Q4 and FY 2012. As expected, the company suffered from significantly falling sales and a battered gross margin.

At the start of April, Suntech Power International Ltd (SPI) applied for a provisional moratorium of up to two months as a result of over-indebtedness. Currently, a court appointed administrator is assessing its financial condition and developing a debt restructuring plan.

Finally, regarding the insolvency of its Wuxi Suntech subsidiary, Suntech has scheduled a creditors meeting for May 22.