Private Equity 25 Feb 2007 12:57 am

Texas Utility in Private Equity Crosshairs

by Sean Hackbarth

TXU logo

Private equity’s thirst can’t be quenched. Kohlberg Kravis Roberts and Texas Pacific Group are reportedly working on buying Texas utility TXU Corp (TXU). Depending on the finally agreed upon stock price the deal could be worth $44 billion making it the largest leveraged buyout in U.S. history. It would top the $33 billion purchase of HCA last year.

In order to get regulatory approval TXU will scrap plans to build eight coal-fired plants and join a corporate group urging carbon dioxide emission regulation. They hope to keep environmentalists off their back.

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