Hedge funds fight for control of PG&E, as Newsom selects new electricity regulator
Major Wall Street players led by Elliott Management, which hold PG&E bond debt, are making a play in bankruptcy court for control of PG&E. As it is, PG&E is controlled by a separate group that is heavily invested in PG&’s stock.
“A hedge fund is only concerned about making money, and I believe they’re going to cannibalize this company and sell it to the highest bidder.” -- Sen. Steven Bradford (D-Gardena).
“There are some very powerful interests that are looking to monetize and not necessarily look out for the best interests of the ratepayers and the state. My interests are California interests, not their interests.” - Govenor Gavin Newsome
Whichever ownership group wins would need sign-off from the California Public Utilities Commission. There, Newsom’s newly selected president, Marybel Batjer, will have an outsized say.
MORE: https://calmatters.org/newsletter/hedge-funds-fight-for-control-of-pge-as-newsom-selects-new-electricity-regulator/
According to the San Francisco Chronicle ...
The firms — Abrams Capital Management, Redwood Capital Management and Knighthead Capital Management — all bought millions of PG&E shares around the time the company and its subsidiary Pacific Gas and Electric Co. filed for bankruptcy protection and the weeks afterward. The stock has since substantially appreciated: As of this month, they were sitting on a collective profit of about $450 million, according to a Chronicle analysis of Securities and Exchange Commission filings.
Three years ago, hedge fund managers controlled about 3% of PG&E’s stock, according to Bloomberg data. Now, that figure is around 50%.
link (paywall): https://www.sfchronicle.com/business/article/Why-hedge-funds-are-fighting-for-control-of-PG-E-14115025.php
I cannot believe this is happening. Not in California.
NOTHING GOOD will come of hedge funds owning our utilities.