PG&E Stock Flares, Then Retreats, on Buffett Buyout Rumors
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.
