HOUSTON, Aug 29 (Reuters) - A $5.89 billion bid from an

affiliate of hedge fund Elliott Investment Management has been

recommended as the winner of a U.S. court-organized auction of

shares in the parent of Venezuela-owned refiner Citgo Petroleum,

according to documents filed late Friday by the officer

overseeing the sale process.

The recommendation from court officer Robert Pincus came

despite a last minute effort from a Gold Reserve ( GDRZF )

subsidiary earlier this week to sweeten its $7.4 billion offer.

Earlier this month, Pincus said an improved bid from

Elliott's affiliate Amber Energy was superior and the court gave

three days to the Gold Reserve ( GDRZF ) group to match it.

Pincus said on Friday that the transaction proposed by

Gold Reserve's ( GDRZF ) Dalinar Energy "did not match or exceed the Amber

sale transaction, and therefore, the Amber sale transaction

continues to constitute a superior proposal."

The auction's proceeds are expected to compensate at

least a handful of 15 creditors that have been fighting since

2017 to recover nearly $19 billion in U.S. courts after

Venezuela expropriated assets and defaulted on debt.