Elliott Investment Wins Citgo Auction Amid Legal Tussles

Activist investor Elliott Investment Management won the U.S. court auction for shares in Citgo Petroleum's parent company, PDV Holding, valuing it at $7.286 billion. The auction aims to repay claims against Venezuela and state oil firm PDVSA. However, legal disputes and bondholder claims could still affect the final outcome.

Activist investor Elliott Investment Management has emerged as the presumptive winner in a U.S. court auction of shares in PDV Holding, the parent company of Citgo Petroleum, with a bid valuing it at up to $7.286 billion, according to a court filing released on Friday.

The auction, overseen by a U.S. district court in Delaware, aims to repay up to $21.3 billion in claims against Venezuela and its state-owned oil firm, PDVSA, due to expropriations and debt defaults. A second and final bidding round closed earlier this year, setting the stage for negotiations on terms.

Elliott's bid includes a combination of cash and credit, though it is subject to the resolution of claims by holders of defaulted Venezuelan bonds, the court said. U.S. court-appointed special master Robert Pincus named Elliott's unit, Amber Energy, as the successful bidder.