> Warren Buffett Blog: Berkshire may have lost Oncor acquisition to Sempra

Monday, August 21, 2017

Berkshire may have lost Oncor acquisition to Sempra


Warren Buffett had made a bid for Oncor last month. rarely gets knocked off by competing bidders. But this time Oncor Electric Delivery Co., the takeover target that Berkshire was pursuing, got away. 

Sempra, a San Diego-based utility owner, made a $9.45 billion bid for the bankrupt parent of the Texas power distributor, topping Berkshire's $9 billion offer that had been agreed to just six weeks ago. It's a win for another billionaire, Paul Singer, whose Elliott Management Corp. had been fighting the Berkshire deal. 

Energy Future’s board decided to make the switch on Sunday after Sempra also offered assurances it could get its acquisition of Oncor approved by Public Utility Commission of Texas, as well as a US bankruptcy judge, the sources told Reuters.

Berkshire offered to allow Energy Future to keep an Oncor dividend, but that proposal was not enough to bridge the gap in price, the sources added.