Star investor buffett loses out in bid for oncor

Star investor buffett loses out in bid for oncor

The californian energy company sempra announced that it had decided to go ahead with a bid in the amount of 9.45 billion dollars (8.05 billion. Euro) to have won the bid for the insolvent oncor parent energy future holdings (EFH).

Buffett’s investment company berkshire hathaway had offered nine billion dollars and was not prepared to increase the offer.

Buffett’s company had secured the backing of important shareholders for the planned takeover. But with the hedge fund elliott management from the empire of the investor paul singer, it had the roughest oncor believer against it. Elliott had criticized the berkshire offer as being too low and had recently bought additional shares in EFH to block the sale.

However, a spokesman for the hedge fund said that they would support the takeover by sempra. The deal is significantly better than berkshire’s offer, he said. Singer is known for using aggressive methods to get his way. Most recently, his influence in the ousting of former siemens CEO klaus kleinfeld at the U.S. Company arconic caused a stir.

For 86-year-old buffett, being booted out of a takeover is a rare experience. The star investor is used to being welcomed with open arms. Oncor is the largest electricity provider in texas, with around ten million customers. Including assumed debt, sempra is paying $18.8 billion for its parent company EFH, which has been in bankruptcy for three years.

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