TXU gets private equity counter offer

Posted Mar 19th 2007 8:10AM by Jonathan Berr
Filed under: Before the Bell, Deals, Law, Private Equity, TXU Corp (TXU)

TXU Corp. (NYSE:TXU) is now the popular girl whom everyone wants to take the the prom. Not bad for a stodgy utility company.

The Blackstone Group, Carlyle Group and Riverstone Holdings may make a counter offer for the Texas power company which has agreed to be bought out by Kohlberg, Kravis & Roberts and Texas Pacific Group in a $32 billion private equity deal, the biggest ever, according to Reuters. The buyout firms are still in early discussions about a potential bid and it may not happen.

As part of the KKR/Texas Pacific deal, TXU has until April 16 to solicit and consider other offers, Reuters said.

Blackstone, Carlyle and Riverstone should get the blessing of the environmental groups that blessed the KKR/Texas Pacific Group bid. That was a PR coup that will help the companies gain leverage with regulators.

Electric utilities generate strong cash flow which private equity firms like. It's only a matter of time until the next deal emerges.

Tags: buyouts, carlyle group, CarlyleGroup, coal, electric utilties, ElectricUtilties, energy, kkr, kohlberg kravis roberts, KohlbergKravisRoberts, power companies, PowerCompanies, riverstone, riverstone holdings, RiverstoneHoldings, texas pacific, TexasPacific