Shares of embattled PG&E (PCG - Get Report)  surged and then retreated on Wednesday on reports that Warren Buffett's Berkshire Hathaway (BRK.A - Get Report) was - and then wasn't - in talks to buy the bankrupt California utility.

PG&E shares surged in both premarket and early regular trading after media reports said the legendary investor was considering a bid for the beleaguered power company. The stock gained as much as 25% in New York premarket trading and opened up in the double digits. 

However, the shares came back down after Buffett himself told CNBC that the report was "100% not true" and that he "would know" if Berkshire Hathaway was in talks to acquire the embattled utility.

As of midday, shares of PG&E were up 6.8% at $22.92 on the New York Stock Exchange.

PG&E filed for Chapter 11 bankruptcy in January as a result of its liabilities tied to last year's devastating California wildfires.

Separately, a California judge on Tuesday agreed that PG&E can pay employees up to $350 million in bonuses this year to spur them to help meet its safety goals to prevent future wildfires.

PG&E's management has said the company needs to implement the bonus plan to carry out tasks such as clearing trees and branches around power lines to avert contact that triggers wildfires.