Buffet aiming for bankrupt Suntech?

Rumors of a buy-in by the "Wizard of Omaha" rallies Suntech stocks.

American billionaire Warren Buffett is said to be interested in buying
Suntech Power Holdings Co., Ltd but no confirmation has been yet received from MidAmerican Energy Holdings Company, which is controlled by Berkshire Hathaway, Buffet’s holding company.

Suntech, China’s largest maker of solar modules, saw its stock plunge 40% when it default on US$541 million in bonds, becoming the first company from mainland China to default on its US bonds.

Suntech’s stock rose as much as 28% after a Hong Kong news service said Buffett’s MidAmerican Energy Holdings Co. might buy the Chinese manufacturer.

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