Warren Buffett, NextEra and the Hunts in a billion-dollar battle for Oncor
USA: Oncor Electric Delivery Co. has been on the market for two years and bidding battle among the suitors Warren Buffet, NextEra and Ray Hunt family might ensue.
The first bid of $18 billion by the Ray Hunt family was rejected after Texas regulators imposed certain conditions.
Stacy Nemeroff, an analyst with Bloomberg Intelligence said that Oncor could be valued as high as $23 billion and NextEra might increase its offer after the Hawaiian bid failed earlier.
Buffet’s Berkshire Hathaway Energy is the frontrunner in terms of capital. The company had numerous acquisitions and has grown significantly since 2000 and it has reportedly put in a bid last week.
Buffett said the company “would continue to buy and build utility operations throughout the world for decades to come.” He also said “We don’t do auctions,”, which could mean that Berkshire Hathaway Energy might avoid a bidding war and cancel out its competitors by putting in a large bid.
It remains to be seen how the Oncor progressive employer philosophy will match with Buffet’s preference for keeping current management, should the Berkshire Hathaway Energy bid be successful.
Source: The Dallas Morning News