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

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

Late on Friday, the 11th of October 2019, the San Francisco-based utility firm, Pacific Gas and Electric Company, shortly dubbed as PG&E Corp., had rejected a $2.5 billion all-cash acquisition offer from the City of San Francisco for the bankrupted PG&E's power lines alongside other utility infrastructures across the city, calling the bid inadequate.

On top of that, adding that the proposal was significantly undervalued, PG&E CEO, Bill Johnson, wrote in a letter to the Mayor of San Francisco, London Breed alongside the city attorney, Dennis Herrera, that a deal of such scale would not be in line with the interests of city consumers.

More importantly, PG&E CEO, Johnson had also added in his letter dated on October 7th that the utility company's strategy to emerge from a bankruptcy would not be including any sell-off of company assets. Meanwhile, adding gloom to the prospect of a buyout deal for the City of San Francisco, Johnson wrote, "Although we cannot accept your offer, we want to clearly communicate that PG&E intends to continue working with the City to best serve the citizens and businesses of San Francisco.

" Nonetheless, the US city of San Francisco had made a $2.5 billion acquisition offer last month, roughly eight months after the utility giant had sought for bankruptcy protection, as a number of wildfires in California including those of 2017 and 2018 had exposed the company to claims and liabilities worth of billions of dollars.