Berkshire's flop on Oncor puts another dent in Buffett's dealmaking reputation
New York
THIS year is not shaping up to be the stuff of Warren Buffett dealmaking legend. His US$9 billion bid to acquire Oncor Electric Delivery Co started to unravel last week after Paul Singer's Elliott Management Corp outmanoeuvred the Oracle of Omaha by acquiring a small parcel of unsecured debt. That opened a window for Sempra Energy to swoop in and strike a deal to acquire the Texas utility.
The loss comes six months after another multibillion-dollar Buffett pursuit hit the skids. In February, his Berkshire Hathaway Inc committed US$15 billion to help Kraft Heinz Co in a proposed buyout of Unilever. The Anglo-Dutch consumer goods giant rejected the approach, and the offer was quickly pulled.
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