In a case of “who might blink first”, billionaire investor Warren Buffett’s vowed not to raise the $9 billion bid he’s made to take over Oncor Electric Delivery Co. in Texas.
His vow comes after Elliott Management Corp. bought some of the debt Energy Future Holdings Corp., the main owner of Oncor and a company that filed for chapter 11 bankruptcy in 2014. Buffett is chairman of Berkshire Hathaway Inc. and offered $9 billion to acquire nearly 80 percent of Oncor. The move by Elliott Management could result in the company blocking Buffett’s bid.
Buffett’s not the only billionaire in this bidding war. So is Paul Singer, leader of Elliott Management. Both have reputations of being tough business leaders.
Added to the mix is what a bankruptcy judge will rule on Monday. The judge could possibly approve Energy Future Holdings’ merger with Berkshire allowing Buffett to head to Texas regulators.
There is one other possibility and it involves Florida-based NextEra Energy Inc., the company that failed in a bid to take over Oncor. NextEra, the energy company with wind farm operations throughout western Oklahoma could receive a $275 million breakup fee from Buffett.
The Texas Public Utlity Commission rejected NextEra’s bid for Oncor earlier this year.
Greg Abel, CEO of Berkshire Hathaway Energy issued a statement along with Buffett about their $9 billion cash bid.
“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.”