Buffett denies interest in buying Suntech

Updated: 2013-05-08 10:07

By Xie Yu (chinadaily.com.cn)

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Investor Warren Buffett denied he was interested in buying Suntech Power Holdings Co Ltd, formerly the world's leading solar panel maker, whose biggest production subsidiary is in bankruptcy in China, China Business News reported on May 6.

Buffett, chairman of Berkshire Hathaway, said he has read media reports about his alleged interest in buying Suntech, but he himself "knows little about the company, and has never had an interest in acquiring the solar company", CBN cited him as saying during an interview at Berkshire Hathaway's shareholder meeting.

Suntech has scheduled a creditors meeting for its Wuxi subsidiary, which began bankruptcy proceedings on May 22. Wuxi Suntech has been said to be in contact with several investors, including Buffett.

Suntech shares have gained 27 percent since the Hong Kong Economic Times reported on April 8 that Buffett's MidAmerican Energy Holdings Co may purchase the company.

Nine banks, including Industrial and Commercial Bank of China, Agricultural Bank of China and Bank of China, had outstanding loans totaling 7.1 billion yuan ($1.15 billion) to Suntech at the end of February, the Xinhua News Agency said.

Suntech defaulted on $541 million of convertible bonds due in March, and announced the bankruptcy of its Wuxi subsidiary. Suntech said it has entered into a forbearance agreement with holders of over 60 percent of the notes under which the signing bondholders agree not to exercise their rights under the notes and related indentures until May 15, 2013.