First Solar Shining Bright On News Of Buffett Deal
December 07, 2011 12:35 PM
Shares of First Solar (Nasdaq: FSLR), the largest U.S. solar energy company, are surging 8% on volume that has already eclipsed the daily average after the company agreed to sell a 550-megawatt solar energy farm in California to Warren Buffett's Berkshire Hathaway's (NYSE: BRK.A) MidAmerican Energy Holdings for $2 billion.
MidAmerican Energy Holdings said it will finish construction on the Topaz Solar Farm that was started by First Solar. The project is expected to be finished by early 2015. Topaz is expected to provide enough renewable energy to power about 160,000 average California homes, according to the Associated Press.
Jefferies said the deal is good for First Solar, particularly given that the market expected either a lower valuation for Topaz or that First Solar would not be able to find a buyer at all.
MidAmerican said it may seek more deals of this nature. Shares of Arizona-based First Solar had lost almost two-thirds of their value before the start of trading today.
