Published: Sat, July 08, 2017
Tech | By Dwayne Harmon

Elliott might make competing bid against Berkshire for Oncor

Elliott might make competing bid against Berkshire for Oncor

That price tag included debt, which may also double the enterprise value of the deal that Buffett is attempting to cobble together.

The proposed merger would need the sign-off of the DE judge overseeing Energy Future Holdings' bankruptcy, along with approvals from the Public Utility Commission of Texas and federal regulators. "Oncor is a great company with similar values and outstanding assets".

It would not be the first time Buffet has been involved with the company, Reuters notes.

Energy Future Holdings was known as TXU until a historic $45 billion leveraged buyout by KKR, Goldman Sachs and TPG Capital in 2007. EFH declared bankruptcy in 2014 and has been mired in court proceedings since.

Wall Street Journal notes the deal aligns with Buffett's energy goals. (NYSE:BRK.A)(NYSE:BRK.B) is another option for investors considering adding an actively managed portfolio of stocks which should continue to outperform for the foreseeable future. Oncor would have been the largest utility ever run as a REIT. Last year, the state government rejected a bid by the Hunt family, a force in the state's oil and power industries.

Berkshire is the third company that will come before regulators in Texas to ask permission to purchase a utility they have highly guarded to date.

The deal also highlights the prominence of Greg Abel, 55, Berkshire Hathaway Energy's chief executive.

If approved by regulators, Bob Shapard will assume the role of executive chairman of the Oncor Board when the transaction closes, and Allen Nye will become CEO.

The energy business does not pay any dividend to Berkshire which gives it the ability to use profit as a way to upgrade infrastructure and buy more utilities.

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