Friday, 1 July 2016
Last updated 1 hour ago
Feb 26 2007 | 12:41pm ET
It’s the largest leveraged buy-out in history, but it’s also reportedly a boon to the environment. A private equity consortium led by Kohlberg Kravis Roberts and Texas Pacific Group is paying $31.8 billion for TXU Corp., a major Texas power company, but if TXU is to be believed, this is not the second coming of Danny DeVito in Other People’s Money.
The newly-private TXU is to be split into three independently-operated business, one each for generation, transmission and distribution, and retail. But the company will also slash energy prices by a tenth and reduce the number of new coal-fueled plants planned to three from 11, a move that got the deal endorsed by the Environmental Defense Fund and Natural Resources Defense Council.
What’s more, World Wildlife Fund Chairman Emeritus William Reilly, also a former administrator of the Environmental Protection Agency, is to join TXU’s board.