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TXU Directors Approve Sale to Private-equity Firms

By: Associated Press
By: Associated Press

Sources tell The Associated Press that TXU will announce today that directors have agreed to sell the company in what would be the largest private buyout in U.S. corporate history.

Under the deal, two private-equity firms buying the utility would abandon plans to build eight new coal-fired power plants.

The two firms -- Kohlberg Kravis Roberts and Company and Texas Pacific Group -- were offering about 32 (B) billion dollars, plus the assumption of more than 12 (B) billion in TXU debt.

People close to the situation spoke on condition of anonymity to the AP because the companies had not officially announced the deal.

Since a turnaround that began in 2004, TXU has become highly profitable. But the dramatic rise in its stock price had stalled, and that made the company an attractive takeover target.

KKR and Texas Pacific Group agreed over the weekend to drop most of TXU's ambitious plans for building eleven new coal-fired power plants.

The move is designed to win support for the deal from environmentalists and other critics of the company.

TXU is the largest electric producer in Texas.


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