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CNBC Exclusive: KKR Near Deal to Buy Texas Utility in Record LBO
CNBC.com (excerpt) ^ | February 23, 2007

Posted on 02/23/2007 2:49:02 PM PST by HAL9000

Excerpt -

In what will be the largest leveraged buyout of all time, the private equity firm of KKR is close to announcing its purchase of TXU, the giant Texas utility that is the largest producer of power in that state, CNBC's David Faber has learned.

TXU's board is expected to vote on the deal this weekend and an announcement is likely on Monday morning, people familiar with the situation told Faber.

TXU officials and KKR declined comment.

The exact price KKR will pay is unclear, Faber said. TXU's current market cap is $27.5 billion. It also has $12.3 billion in debt. Since the consideration will be in cash and given TXU's current enterprise value is roughly $39 billion, the addition of any premium will make it the largest lbo ever, topping blackstone's recent $39 billion purchase of equity office properties.

~ snip ~


(Excerpt) Read more at cnbc.com ...


TOPICS: Business/Economy; News/Current Events; US: Texas
KEYWORDS: energy; kkr; lbo; txu; utilities

1 posted on 02/23/2007 2:49:04 PM PST by HAL9000
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To: HAL9000

Geeez Louise...


2 posted on 02/23/2007 2:51:17 PM PST by xcamel (Press to Test, Release to Detonate)
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To: HAL9000

What will KKR sell off after they have it?


3 posted on 02/23/2007 3:00:25 PM PST by showme_the_Glory (No more rhyming, and I mean it! ..Anybody want a peanut.....)
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To: showme_the_Glory

OR

How high will the rates have to go to cover the buyout?


4 posted on 02/23/2007 3:16:23 PM PST by ASOC
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To: HAL9000

I had to do a double-take. Though it said the KKK.


5 posted on 02/23/2007 3:44:08 PM PST by dc-zoo
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To: Professional Engineer

ping


6 posted on 02/25/2007 10:40:32 AM PST by Peanut Gallery
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