Suntech Power Holdings Co. ( STP ) is down almost 14% at 94 cents a share - and closer to a year low 71 cents - as a debt default deadline looms and amid reports it is preparing to be taken over by local government authorities in Wuxi, the Chinese city where the company is based, according to the New York Times.
A deal has been reached for the acquisition of all or part of Suntech, the newspaper said today, citing an unidentified woman who answered the phone at the executive offices of Wuxi Guolian, a holding company set up by the local government in 1999 with assets of 42.6 billion yuan or about $6.9 billion.
An STP spokesman declined to comment, the paper said.
Bloomberg reported earlier today: "Five Wall Street investment and hedge funds have the most to lose as China's Suntech Power Holdings Co. ( STP ) seeks more time to repay $541 million of convertible debt."
It said: "Mount Kellett Capital Management LP, Driehaus Capital Management LLC, Pioneer Investment Management Inc., Silverback Asset Management LLC and Susquehanna International Group LLP owned about 32% of the debt, according to December public filings compiled by Bloomberg. The Wuxi-based company that was once the world's biggest solar panel maker said March 11 that more than 60% of holders had agreed to extend the repayment date to May 15 from March 15."
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
