"Shunfeng Photovoltaic International to pay for Wuxi Suntech purchase with USD 460 million convertible bond issue"

A correspondent writes,

"Check out the terms of the [Shunfeng Photovoltaic] convert deal. The mysterious Mr. Cheng is taking 2/3rds of the deal, convertible at a 40% discount to the last close, senior unsecured piece of paper, zero coupon, non convertible for the first six months. It can be put or called after 5 years. If the stock goes nowhere for 5 years it is a 12% return for the convert holders. How's that for corporate governance?"

The Shunfeng stock price was down ever so slightly. Here's a news story on the deal - sounds terrible for existing Shunfeng shareholders.

Of course, we are in a mania right now and even though photovoltaic solar panel manufacturing is a hopelessly unprofitable business [especially when you "own" Chinese plants through Cayman Island shell companies], retail has an inexplicable yet fierce attachment to anything involving solar energy.