WILL BUFFETT BUY A BANKRUPT CHINESE SOLAR MAKER?

Suntech Jumps On Buffett Buyout Report...

April 9, 2013 (EQ International)

“Chinese solar manufacturers rallied in New York, led by Suntech Power Holdings Co. (STP), on a report that billionaire Warren Buffett may be interested in buying the company forced into bankruptcy after defaulting on debt. The Bloomberg China-US Equity Index (CH55BN) of the most-traded Chinese companies in the U.S. rose…

“…Suntech jumped as much as 28 percent after a news service owned by Hong Kong Economic Times said Buffett’s MidAmerican Energy Holdings Co. may buy the solar panel maker, citing an unidentified person. Trina Solar Ltd. (TSL) surged the most in two months. SouFun Holdings Ltd. (SFUN) slumped a second day.”

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“Suntech, which defaulted on a $541 million bond repayment last month, has lost 18 percent since Chinese banks filed an insolvency petition for its main unit March 20. Tina Potthoff, a spokeswoman for MidAmerican in Des Moines, Iowa, said by e-mail that the company doesn’t comment on speculation…The rumor Buffett is interested in buying Suntech…is helping drive gains in solar equities...

“…Suntech, LDK Solar Co. and Yingli Green Holding Co…are among the top 10 worst performers this year on the China-US gauge amid a supply glut and alternative-energy subsidy cuts in Europe…[Suntech] was the world’s biggest solar-panel maker in 2011…MidAmerican has invested in solar power projects in California and Arizona and wind farms in Illinois. Chief Financial Officer Patrick Goodman said in November that the company was targeting renewable energy deals, in part because utility valuations were high…”

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