Warren Buffett's Berkshire Hathaway Will Not Buy Bankrupt Oncor
Sempra Energy (SRE) - Get Report agreed to buy Texan power distributor Oncor Electric Delivery and its bankrupt parent Energy Future Holdings for an enterprise value of about $18.8 billion, bursting in on Berkshire Hathaway's (BRK.A) - Get Report (BRK.B) - Get Report 's $18.1 billion offer.
Claiming the deal will strengthen Oncor's underlying financial strength and credit ratings, Sempra said it is committed to supporting Oncor's $7.5 billion, five-year capital investment plan.
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San Diego-based energy services holding company said it will pay $9.45 billion in cash for the acquisition - - compared with the $9 billion on offer from Berkshire Hathaway. It said it will fund the deal with a combination of its own debt and equity, what it called third party equity and "3 billion of investment grade debt at the reorganized holding company."
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