• 4 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 7 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 19 hours IMO 2020 could create fierce competition for scarce water resources
  • 4 hours Apartheid Is Still There: Post-apartheid South Africa Is World’s Most Unequal Country
  • 2 mins Total nonsense in climate debate
  • 1 day IMO2020 To scrub or not to scrub
  • 14 hours Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 5 hours IRAN makes threats, rattles sabre . . . . U.S. makes threats, rattles sabre . . . . IRAQ steps up and plays the mediator. THIS ALLOWS BOTH SIDES TO "SAVE FACE". Then serious negotiations start.
  • 9 hours Theresa May to Step Down
  • 1 day Devastating Sanctions: Iran and Venezuela hurting
  • 24 mins Will Canada drop Liberals, vote in Conservatives?
  • 41 mins Canada's Uncivil Oil War : 78% of Voters Cite *Energy* as the Top Issue
  • 1 day Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 1 day Level-Headed Analysis of the Future of U.S. Shale Oil Industry
  • 48 mins Trump needs to educate US companies and citizens on Chinese Communist Party and People's Liberation Army. This is real ECONOMIC WARFARE. To understand Chinese warfare read General Sun Tzu's "Art of War" . . . written 500 B.C.
The Silence Before The Storm In Oil Markets

The Silence Before The Storm In Oil Markets

Current market volatility may seem…

The Trade War Is Transforming Oil Markets

The Trade War Is Transforming Oil Markets

China-US trade talks have exposed…

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

Warren Buffett

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.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News