• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 9 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 days Does Toyota Know Something That We Don’t?
  • 4 hours America should go after China but it should be done in a wise way.
  • 6 days World could get rid of Putin and Russia but nobody is bold enough
  • 8 days China is using Chinese Names of Cities on their Border with Russia.
  • 9 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 9 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 9 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 8 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 9 days Putin and Xi Bet on the Global South
  • 9 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 10 days United States LNG Exports Reach Third Place
  • 10 days Biden's $2 trillion Plan for Insfrastructure and Jobs

Buffett Won’t Go Higher than $9B For Oncor Utility Giant

Berkshire Hathaway Energy is standing by its US$9-billion offer to buy 80 percent of Texas-based Oncor Electric Delivery Company and will not be raising the offer, Warren Buffett’s company said on Wednesday.

The statement comes amid a bidding war with Elliott Management for Oncor’s parent company, Energy Future Holdings, which filed for Chapter 11 restructuring earlier this year.

“We appreciate the continued opportunity to collaborate with many stakeholder groups in Texas and thank them for their outstanding support, which sets our offer apart from any other bid,” Greg Abel, Berkshire Hathaway Energy chairman and CEO, said in the statement.

“We’re committed to being an exceptional long-term partner in Texas and our simple, straightforward deal is good for Oncor, its customers and the state,” the manager noted.

“We already have a number of excellent companies operating in Texas. It is a great place to do business, and we look forward to continuing to invest in the state,” Warren Buffett said.   

Berkshire is pitching its acquisition offer as straightforward and gaining growing support among influential stakeholder groups in Texas.

Elliott, on the other hand, is the biggest creditor of Oncor’s parent Energy Future Holdings and has offered US$9.3 billion. Elliott’s offer implies a total enterprise value for Oncor of US$18.5 billion, including debt. This compares with Berkshire’s valuation of US$18.1 billion. 

Related: Oil Rises, But Saudis Face Daunting Dilemma

Elliott has been buying up the debt of Energy Future Holdings in recent months, and has bought a different class of impaired notes from Fidelity Investments, which makes any deal with Energy Future Holdings contingent on Elliott approval, The Wall Street Journal reported on Wednesday, citing people familiar with the matter.

According to The Journal’s sources, Elliott now controls all the impaired classes of Energy Future Holdings debt, and has told the court that it would not endorse the Berkshire acquisition offer as-is.

ADVERTISEMENT

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News