Thursday, August 22, 2013

Correspondent Writes in Regarding Suntech ($STP)

An anonymous correspondent left this comment on one of our older Suntech posts.

There were stories today in Chinese media asking: "who would "bargain hunt" for Suntech?"

Reporters are questioning the Wuxi newspaper report on the 4 potential strategic investors (listed above).

Neither Trina, nor Yingli press offices are confirming that they are conducting due diligence on Wuxi Suntech.

Sources stated that even if there was attractive financing instead of unattractive debt, Chinese solar companies are simply not interested in adding capacity or increasing operating expenses.

An unspecified source who works for Trina has the opinion that the Suntech brand + distribution networks are the only thing that either a solar entrant or new energy company might find of value.

Reporters have yet to find any management for Beijing Putian New Energy and are baffled as to why this research based JV would be interested in Wuxi Suntech assets.

An analyst who covers CNOOC (NYSE:CEO ADR) told reporters that it had no desire to talk to solar companies when previous takeover rumors emerged.

The CEO of China XD Electric Co Ltd (Shanghai:601179) denied it is willing to take over Wuxi Suntech in an interview but confirmed that both sides are still talking.
I wasn't able to find this story but it sounds plausible.

1 comment:

Anonymous said...

This post is a good translation of a summary of news reports from 中国能源报 (China Energy Review which can be found on many sites, such as