A PYMNTS Company

US: Elliott to Duel Berkshire over Oncor

By  |  July 11, 2017

Elliott Management, the largest creditor of Energy Future, the bankrupt parent of Oncor Electric Delivery, unveiled a plan on Monday to best Berkshire Hathaway in the deal for the Texas utility with a bid worth US$18.5 billion, including debt.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Elliott revealed in documents published on its website it was unhappy with the recovery to some creditors under an US$18.1 billion deal announced by billionaire Warren Buffett’s Berkshire on Friday, July 7. The hedge fund believes its acquisition offer would result in a higher payout to debt holders.

    New York-based Elliott’s proposal to acquire Oncor calls for a complex conversion of its debt to equity and for an outside equity partner to help finance the deal. Reuters first reported on Elliott exploring a bid for Oncor on Friday.

    The offer from the hedge fund, which says it has more than US$32 billion under management, would be a rare challenge to Buffett, who avoids auctions for companies and has told his investors he does not like to participate in bidding wars. But even without a competing bid, Buffett’s deal faces a difficult road securing the approval of a bankruptcy court judge without Elliott supporting it.

    Full Content: Bloomberg

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.