BYD denies report on Buffett's share sale
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Chinese car and battery maker BYD Co. denied media reports that US billionaire Warren Buffett may sell his stake in the company, Sina.com reported.
Foreign media recently reported that Buffett planned to sell some of or even all his shares in BYD during his visit to the Chinese automaker next week. Buffett and Bill Gates will come to China next week and visit the cities of Beijing, Changsha and Shenzhen.
"These reports lack basis in fact. We haven't seen any signs of Buffett planning to sell his stakes in the company," said Li Qian, head of BYD's investor relations department. "And since Buffett is willing to pay a visit to BYD, it's impossible he just comes here to sell his shares," Li added
In 2008, Buffett bought 10 percent of BYD shares for US$230 million through Berkshire Hathaway Inc, a company he controls. Now this investment is worth about US$1.6 billion.
Analysts think that Buffett's visit to BYD may not be good news for the automaker. The billionaire could be considering selling some of his stake in BYD as the company has been facing challenges this year, such as sliding sales, delayed export plans and the development mode bottleneck.
China's business press carried the story above on Sunday. China.org.cn has not checked the stories and does not vouch for their accuracy.
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