Dive Brief:
- More than one bidder has come forward to consider buying Energy Future Holdings' stake in Oncor, the Texas transmission and distribution company now facing a bidding war stemming from Energy Future's bankruptcy.
- The Star-Telegram reports the company is expected to select a "stalking horse" bidder — the bidder chosen by the company to make the first bid — to help set the price within six weeks.
- Energy Future filed for Chapter 11 bankruptcy last year and is attempting to sell its 80% stake in Oncor as part of its efforts to restructure more than $40 billion in debt.
Dive Insight:
Interest in Oncor is heating up. Multiple bidders have now come forward as a potential "stalking horse" to set the initial bid for the company. Once selected, Energy Future attorneys will inform the bankruptcy court of the suitor, which is expected to happen in about six weeks.
Oncor serves more than 3 million homes and has about $15 billion in annual earnings, making it the largest transmission and distribution utility in Texas. The company is considered Energy Future's prize asset as it attempts to restructure. Oncor last year said it intends to invest $1 billion annually in power lines through 2018.
CenterPoint Energy, NextEra Energy Inc., Hunt Consolidated Inc. and Warren Buffett's Berkshire Hathaway Inc. were all among companies exploring bids for the company. Oncor was initially valued between $15 billion and $16 billion, but some estimate its value could approach $20 billion in a bidding war.
