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Buffett’s Berkshire Hathaway will not increase its Oncor offer

Posted by: Admin | Posted on: August 17th, 2017 | 0 Comments

(Reuters) – The energy unit of Warren Buffett’s Berkshire Hathaway Inc said on Wednesday it will “stand firm” on its $9 billion offer to acquire 80 percent of Oncor Electric Delivery Company LLC and will not increase its offer.

Elliott Management Corp, the largest creditor of the bankrupt parent of Oncor Electric Delivery Co, has tried to best Berkshire Hathaway Inc’s deal for the Texas utility with a bid worth $18.5 billion, including debt.

A U.S. bankruptcy judge in July gave Elliott Management Corp until Aug. 21 to formalize its plans to bid on Oncor Electric Delivery Co before the court approves the offer for the utility from Berkshire Hathaway.

“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,” Berkshire Hathaway Energy Chairman and Chief Executive Greg Abel said in a 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.”

Berkshire Hathaway Energy’s bid for Oncor includes 47 regulatory commitments that have the support of 12 key stakeholder groups across Texas, the company said.

“Oncor is a strong company with values, management and employees that will fit well with Berkshire Hathaway,” said Warren Buffett, chairman and Chief Executive of Berkshire Hathaway Inc.

Berkshire’s merger agreement with Oncor carries a $270 million termination fee should the deal fall through.

Reporting by Subrat Patnaik in Bengaluru; Editing by Sandra Maler and Lisa Shumaker

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