Showdown at Citgo: Hedge Funds Battle for Control in High-Stakes Auction
In a heated competition, hedge fund Elliott Investment Management and miner Gold Reserve vie for shares of Citgo Petroleum's parent company. As the auction nears final stages, differing offers, negotiations over Venezuelan bond payments, and strategic moves create suspense over who will emerge victorious.
The high-stakes auction for shares of Citgo Petroleum's parent company is entering its final stages, with affiliates of hedge fund Elliott Investment Management and miner Gold Reserve leading the competition. U.S. court officer Robert Pincus is set to recommend a winner by Monday's deadline.
Gold Reserve's subsidiary, Dalinar Energy, previously touted for a $7.4 billion bid, is up against Elliott's affiliate Amber Energy amidst a slew of strategic moves and last-minute negotiations. Both parties are vying for approval as the auction seeks to pay $19 billion to creditors as compensation for past Venezuelan debts and expropriations.
Amid intense negotiations, key differences between offers include cash versus non-cash considerations and payments to Venezuelan bondholders. Amber Energy reached a pact with more than two-thirds of the bondholders, strengthening its proposal. Meanwhile, Gold Reserve is refining its bid, intent on satisfying a majority of claimants.
(With inputs from agencies.)
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