New York Hedge Fund Thinking of Topping Buffett Oncor Offer: Reuters
Billionaire Paul Singer could convert debt to equity, block Warren Buffett offer
The largest Oncor creditor thinks it may be able to outbid Warren Buffett for possession of Texas's largest power transmission company, which has been in bankruptcy
Elliott Management Corp., an activist New York City hedge fund run by billionaire Paul Singer, seeks to convert its debt in the company to equity while also raising new equity financing for the deal, according to Reuters, citing "people familiar with the matter."
Warren Buffett's Berkshire Hathaway Inc. has put together a $9 billion cash offer for Oncor, Reuters reported Thursday; Singer's fund wants to see details of the Buffett offer before deciding whether to make a play for Oncor
The prevailing deal would have to approved by a bankruptcy judge and by the Texas Public Utility Commission.
Elliott Management believes it can provide a higher offer than Berkshire Hathaway's reported plan, with Elliott already holding nearly a-third of the debt owed by Energy Future Holdings, Oncor's indirect parent company.
By Mike Shiloh
Copyright July 07, 2017, Mike Shiloh, Texas Energy Report LLC, www.texasenergyreport.com, All rights are reserved