CNBC: TXU is the next mega-buyout

Investors are awaiting the next mega deal. How about TXU Corporation (NYSE:TXU)? Such a deal would go for more than $32 billion (I think qualifies for "mega").

Well, that's the buzz – which got its spark from CNBC's M&A guru, David Faber. Apparently, the buyers are KKR and the Texas Pacific Group. The deal is supposed to be announced on Monday.

Founded in 1944, TXU is a major energy generation company. In fact, the company has been growing fairly nicely. In the latest quarterly report, earnings surged 77.7% to $1 billion. Yes, this company has a lot of cash flow to do a big-time deal.

Just a few years ago, the company was in tough shape. But current management has done a speculator job of turning things around. Part of TXU's business is regulated (that is, under utility laws). Then again, the Texas Pacific Group has a strong background in dealing with these matters. After all, one of its latest deals was the buyout of Harrah's Entertainment (NYSE: HET), which is also a heavily regulated company.

Wall Street certainly thinks a deal is near. In after market trading, TXU's stock surged 15.79% to $69.50.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.