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Saturday, January 16, 2021

Buffett’s firm maintains $9B bid for power transmitter Oncor

OMAHA, Neb. (AP) — Warren Buffett’s company is maintaining its $9 billion bid for Texas power transmitter Oncor despite competition from a private equity fund.

Greg Abel, who leads Iowa-based Berkshire Hathaway Energy, said he doesn’t plan to increase the offer for Oncor, which serves about 10 million people.

A bankruptcy court hearing is scheduled for Monday to review Berkshire’s bid for Oncor. Its parent company, Energy Future Holdings Corp., entered bankruptcy in 2014 facing more than $40 billion in debt after energy prices plunged.

Hedge fund Elliott Management, which owns a significant portion of Oncor’s debt, opposes Berkshire’s takeover bid, and Elliott is putting together a competing bid for Oncor with a higher price. 

The bankruptcy court and Texas utility regulators will have to sign off on any sale.

Buffett’s Omaha, Nebraska-based Berkshire already owns several utilities.

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