Third Bidder Emerges for Energy Future's Oncor
August 18 2017 - 3:19PM
Dow Jones News
By David Benoit and Dana Mattioli
A new bidder has emerged with a $9.3 billion offer for
power-transmission company Oncor that could wrest it from a deal
with Warren Buffett's Berkshire Hathaway Inc., according to people
familiar with the matter.
The bidder's existence emerged in a late-scheduled court hearing
on Friday, but the identity wasn't revealed, the people said. It
was referred to as a large strategic company, the people said. The
information came out as hedge fund Elliott Management Corp. was
attempting to learn more about the bid in its efforts to block the
Berkshire deal, the people said.
A new offer would be the latest twist in the long-running saga
of the fate of Energy Future Holdings Corp., the former TXU, which
owns Oncor and has been in bankruptcy. Elliott is its largest
creditor and was trying to organize its own restructuring.
Elliott is seeking to depose executives of Energy Future over
the new bid, raising concerns the company could block a higher
offer to push through Berkshire's deal, the people said.
Mr. Buffett's Berkshire had struck a deal to buy Oncor in a $9
billion deal last month. Elliott had sought to challenge
Berkshire's deal by cobbling together one of its own, although the
details of where that bid stands are unclear.
After months of amassing debt of Energy Future Holdings Corp.,
Elliott bought a strategic slice of notes that would ensure its
ability to block the deal, people familiar with the matter
said.
Write to David Benoit at david.benoit@wsj.com and Dana Mattioli
at dana.mattioli@wsj.com
(END) Dow Jones Newswires
August 18, 2017 15:04 ET (19:04 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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