PG&E turns down San Francisco's $2.5 billion offer to buy assets

This post was originally published on this site

(Reuters) – PG&E Corp (N:) rejected a $2.5 billion offer from San Francisco to buy the bankrupt Californian company’s power lines and other infrastructure within the city, citing the offer was inadequate.

San Francisco’s offer significantly undervalued its assets and a deal wouldn’t be in the best interest of its customers, PG&E Chief Executive Officer Bill Johnson wrote in a letter, dated October 7, to San Francisco Mayor London Breed.

The company’s financing strategy to emerge from bankruptcy did not include selling off company assets, Johnson said in the letter.

“Although we cannot accept your offer, we want to clearly communicate that PG&E intends to continue working with the City to best serve the citizens and businesses of San Francisco.”

In early September, eight months after the utility sought Chapter 11 bankruptcy protection, San Francisco offered to buy PG&E’s assets serving the city.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.