Buffett’s Berkshire Hathaway facing challenge from Sempra Energy for Oncor

Buffett’s Berkshire Hathaway facing challenge from Sempra Energy for Oncor

Board members of the bankrupt Energy Future Holdings will reportedly hold a meeting this Sunday to decide whether to sell its power transmission division Oncor to Warren Buffett’s Berkshire Hathaway Inc. or accept a competing bid from Sempra Energy.

Speaking on the condition of anonymity, a person familiar with the matter revealed that the board received an opposing bid for Oncor from Energy Future’s biggest creditor Paul Singer's hedge fund Elliott Management Corp last Friday.

A few days back, Buffett-led Berkshire Hathaway declared that it wouldn’t increase its offer for Oncor even by a nickel.

Jim Shanahan, a senior analyst at Edward Jones & Co., “Paying extra is not the way he does business. He is willing to be patient and wait for opportunities. That's what analysts expect, and that's what investors expect.”

Berkshire Hathaway Energy chairman and CEO Greg Abel and Berkshire Hathaway chairman and CEO Warren Buffett declared that they stood “firm” on their $9 billion offer for buying 80 per cent of the Texas utility.

Even if regulatory concerns trump price considerations, and Berkshire's bid for Oncor prevails on Sunday over that of Sempra, a San Diego-based utility, the sale has to be approved on Monday by U.S. Bankruptcy Judge Christopher Sontchi in Wilmington, Delaware.


Popular Stories

Tesla announces risky new approach to customer service

During the past few years, Tesla was slammed by a... Read More

Facebook downranks video clickbait & fake play buttons

Facebook, the world’s most-popular social-... Read More

Berkshire Hathaway declines to raise its Oncor offer

Warren Buffett-led Berkshire Hathaway’s energy... Read More

Intel will unveil 9th-generation Core family member on August 21

In addition to the planned unveiling of its 8th-... Read More

Ryanair alleges conspiracy between Lufthansa management and Air Berlin

Alleging a conspiracy between Lufthansa management... Read More