Elliott Affiliate’s $5.89B Bid Recommended in Citgo Auction

A $5.89 billion bid from an affiliate of hedge fund Elliott Investment Management has been recommended as the winner of a U.S. court-organized auction of shares in the parent of Venezuela-owned refiner Citgo Petroleum, according to documents filed by the court officer overseeing the process, Marianna Parraga reported for Reuters.

The transaction proposed by Gold Reserve’s Dalinar Energy allegedly “did not match or exceed the Amber sale transaction. (Photo: Professional Systems Engineering)

Improved offers emerged in the final stages of the auction, spurred by rulings in parallel legal cases that encouraged revisions. Delaware Judge Leonard Stark is expected to make a final decision on the winning bid at a hearing next month.

The recommendation from court officer Robert Pincus came despite a last-minute attempt by a subsidiary of miner Gold Reserve to improve its $7.4 billion offer, which had previously been marked as the frontrunner.

Earlier this month, Pincus said an enhanced bid from Elliott’s affiliate Amber Energy was superior and gave the Gold Reserve group three days to try to match it.

Pincus said last week that the transaction proposed by Gold Reserve’s Dalinar Energy “did not match or exceed the Amber sale transaction, and therefore, the Amber sale transaction continues to constitute a superior proposal.”

However, he left the door open for the court to request a revised recommendation based on “intervening events.”