Auditor Says Tianwei Trips on Polysilicon Bet

Solar equipment manufacturer Tianwei New Energy Holdings trumpeted a successful overseas acquisition at a "bottom price" when it bought Hoku Scientific, a U.S. supplier, in October 2009.

But a recent National Audit Office report suggests the buyer was only blowing hot air, and that its American partner was and still is in serious trouble.

The acquisition was less of a business move than a desperate attempt to protect Tianwei from losses tied to a failing polysilicon contractor, the Chinese government auditors reported.