Berkshire Hathaway Inc. (BRK.B) Stock Rating Lowered by Vetr Inc

Berkshire Hathaway Inc. (BRK.B) Stock Rating Lowered by Vetr Inc

Berkshire Hathaway Inc. (BRK.B) Stock Rating Lowered by Vetr Inc

Berkshire Hathaway Energy will acquire reorganized EFH, which will ultimately result in the acquisition of Oncor, an energy delivery company serving approximately 10 million Texans. Elliott is a major creditor of Energy Future Holdings, which owns most of Oncor and has been working its way through bankruptcy court.

A deal for Oncor also would be the next step in one of the largest bankruptcy proceedings on record: Energy Future's $42 billion bankruptcy filed in 2014.

It is Berkshire's biggest takeover bid since the conglomerate bought Precision Castparts, an aerospace parts maker, for $37 billion two years ago. That price tag included debt, which may also double the enterprise value of the deal that Buffett is attempting to cobble together. Warren Buffett's Berkshire Hathaway will pay $9 billion for Oncor.

Energy Future Holdings was known as TXU until a historic $45 billion leveraged buyout by KKR, Goldman Sachs and TPG Capital in 2007.

The regulators failed to accept that the NextEra transaction was in the public interest - a requirement for the deal. Last week NextEra offered US$18bn to buy the company in its third attempt while the Hunt family made a failed approach past year. Buffett said in a statement.

Following the completion of the transaction, Shapard will assume the role of executive chairman of the Oncor Board, while Allen Nye will become the CEO of Oncor.

Oncor is the largest T&D utility in Texas and the sixth largest in the United States.

An institutional investor recently bought a new position in Berkshire Hathaway stock.

The share price of Berkshire Hathaway (NYSE:BRK-B) was up +0.03% during the last day of trading, with a day high of 172.51.

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