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Home / Business / PG&E rejects San Francisco's $ 2.5 billion offer to buy assets

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



FILE PHOTO: A PG&E truck with a US flag drives past PG&E repair cars in Paradise, California, USA November 21, 201

8. REUTERS / Elijah Nouvelage

(Reuters) – PG&E Corp rejected a $ 2.5 billion offer dollars from San Francisco to buy the bankrupt, California-based power lines and other infrastructure in the city, calling the offer insufficient.

The offer significantly underestimated the assets, and an agreement would not be to the benefit of the company's clients, PG & E CEO Bill Johnson wrote in a letter to San Francisco Mayor London Breed and City Attorney Dennis Herrera.

The company's financing strategy to get out of bankruptcy did not include the sale of the company's assets, Johnson said in the letter, which was dated Oct. 7.

"Although we cannot accept your offer, we want to clearly communicate that PG&E intends to continue to work with the city to best serve San Francisco residents and businesses," Johnson wrote.

San Francisco had made the offer in September, eight months after the tool sought Chapter 11 bankruptcy protection.

Breed and Herrera responded on Friday saying that San Francisco would continue to invest in the acquisition of PG & E's electrical assets. They said in a statement that the company's arguments for the proposal were "inconsistent" with the comprehensive analysis done by the city and its financial advisers.

"We are not surprised by PG & E's response so far," said the two officials. "We are not giving up either. Now, more than ever, it is clear that we need to regain control of San Francisco's electric service and achieve energy independence."

Reporting by Shanti S Nair in Bengaluru; Editing by Shinjini Ganguli and Leslie Adler [19659010] Our Standards: The Thomson Reuters Trust Principles.


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