Elliott Investment Set for Major Citgo Acquisition Amid Legal Tussles

Elliott Investment Management emerges as the winning bidder in a U.S. court auction for Citgo Petroleum's parent, putting a $7.286 billion value on the Venezuela-owned company. Legal challenges from bondholders and other claimants could delay final approval. The court has a hearing scheduled for November 19 to finalize the sale.

Activist investor Elliott Investment Management has been named the presumptive winner in a U.S. court auction, valuing Citgo Petroleum's parent company at up to $7.286 billion. This development was revealed in a court filing on Friday.

The auction, held by a U.S. District Court in Delaware, aims to resolve claims worth up to $21.3 billion against Venezuela and its state oil company PDVSA. Elliott's offer includes a mix of cash and credit but is subject to resolution of competing claims by defaulted Venezuela bondholders.

The court has scheduled a November 19 hearing to approve the sale, but experts warn that ongoing legal disputes could delay finalization. Even if Elliott's bid is approved, opposing bondholders may escalate their cases, potentially prolonging the process by several months.

(With inputs from agencies.)