Apr 18, 2007 9:42 am US/Central
TXU Will Sell To KKR & Texas Pacific
DALLAS (AP) ―
Electric utility TXU Corp. said Wednesday it is going ahead with a $32 billion sale to buyout firms Kohlberg Kravis Roberts & Co. and Texas Pacific Group after no better offers surfaced during a solicitation period that ended this week.
TXU said financial advisers Lazard Freres & Co. LLC solicited interest from more than 70 potential buyers, including other utilities and interest energy companies. TXU said it provided confidential information to 10 of those suitors.
The Dallas-based company, the largest power generator in Texas, hired Lazard to sift through other bids for several weeks, up until Monday.
But no proposal was received "that could reasonably be expected to result in a proposal superior" to the $69.23 per share offer from KKR and TPG. The buyers would also assume more than $12 billion in TXU debt and would finance the purchase largely by borrowing $24.6 billion against TXU.
The sale is subject to approval by regulators and TXU shareholders but is not contingent on financing.
TXU said it and the buyout firms were continuing to complete the sale, announced in February. The company said it would seek approval from the Nuclear Regulatory Commission and provide information about the deal to the Texas Public Utility Commission this month.
(© 2007 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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