PG&E shares surge 40 percent on report regulator wants to avoid bankruptcy from wildfire

Downed power and utility lines are scattered on pavement following the deadly Camp Fire in Paradise, California, U.S., November 12, 2018. REUTERS/Sharon Bernstein

SAN FRANCISCO/LOS ANGELES (Reuters) - PG&E Corp shares soared 40 percent in after-hours trade on Thursday after a report that a regulatory official told investors the agency does not want the utility to go into bankruptcy should it be found responsible for this month's deadly wildfire in northern California.

Bloomberg reported the comment by a California Public Utilities Commission (CPUC) official on a call hosted by Bank of America Corp , citing a person familiar with the matter.