(Investing) – A U.S. federal court auctioning shares in the parent of Venezuela-owned U.S. refiner Citgo Petroleum to pay creditors for expropriations and debt defaults has received a competing bid, an officer overseeing the process said in a filing.
A $7.4 billion bid by a group led by a subsidiary of Canadian miner Gold Reserve was recommended last month as winner of the bidding round, but the judge must still decide whether to approve it, following objections by some creditors and competitors.
Officer Robert Pincus notified the court on the “unsolicited bid,” according to a filing late on Thursday. He did not disclose the date of submission or the bidder’s name.
Gold Reserve said on Friday in a release that in early July the court had authorized Pincus to engage with the bidder, identified as “Bidder B,” and reactivated its access to a data room set with key information about Citgo.
Since the unsolicited bid was received, Pincus “has consistently engaged with Bidder B regarding its progress in furtherance of the proposed transaction,” and the bidder is now in active discussions with parties whose consent or agreement is required for the proposed transaction, Gold Reserve added in the release.
However, Pincus has not so far deemed the new bid to be a proposal superior to the Gold Reserve group’s recommended offer, the miner said.
