Intensifying Bidding War for Citgo's Parent Company

Elliott Investment Management has increased its bid to $8.82 billion for Citgo's parent company PDV Holding amidst a contentious auction process. Competing bids from Amber Energy and Vitol have emerged, with key agreements potentially influencing outcomes, as bidders seek to satisfy debt obligations linked to Venezuela's PDVSA bonds.

A hedge fund affiliated with Elliott Investment Management has raised its bid for the parent company of Citgo Petroleum to $8.82 billion, according to a recent filing. The U.S. court-managed auction of PDV Holding aims to address debt defaults and expropriations tied to Venezuela and state oil entity PDVSA.

Despite the court officer's recommendation of a $7.4-billion bid by a group led by miner Gold Reserve, the auction continues to see unsolicited offers. Amber Energy and Vitol are among the contenders, with Amber's proposal reportedly gaining bondholder support, a crucial aspect to prevent further legal complications.

As debates over bid valuations persist, the PDVSA 2020 bond has shown market response, trading up to 91 cents. Meanwhile, a procedural conference has been postponed, further complicating an already intricate auction process.

(With inputs from agencies.)