Elliott Management Corp. said a bid by Warren Buffett’s Berkshire Hathaway Inc. for Oncor Electric Delivery Co. fails to maximize value for Oncor creditors.
“While we are entirely supportive of a transaction with Berkshire or another third party in the event that the value provided by that transaction exceeds the value being proposed by Elliott, we fear that the Berkshire transaction does not provide such value,” Elliott said in a July 5 letter released Monday. Elliott claims to be Oncor’s largest creditor after buying large chunks of the company’s debt over the past few months.
Berkshire announced Friday that it’ll buy Oncor in a deal said to be valued at about $17.5 billion. The takeover is key to ending the bankruptcy of Energy Future, formed by KKR & Co., TPG Capital and Goldman Sachs Capital Partners as part of the biggest leveraged buyout in history.
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