Berkshire Hathaway won’t back down in face-off with Elliott over Oncor
Bengaluru — The energy unit of Warren Buffett’s Berkshire Hathaway said on Wednesday it will "stand firm" on its $9bn offer to acquire 80% of Oncor Electric Delivery Company and will not increase its offer. Elliott Management, the largest creditor of Oncor’s bankrupt parent Energy Future Holdings, has tried to best Berkshire’s offer for the Texas utility with a $9.3bn proposal. Including debt, Elliott’s offer values Oncor at $18.5bn, above Berkshire’s $18.1bn valuation. Elliott, which already owned a major position in the biggest block of debt of Energy Future, had now purchased a slice of a different class of debt that would ensure the hedge fund’s ability to block Buffett’s deal, the Wall Street Journal reported on Wednesday. The fund’s new purchase is in an impaired class of notes, meaning it would not be paid fully in the restructuring, and its approval was probably needed to get a deal done, the Wall Street Journal reported, citing people familiar with the matter. A US bankrupt...
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