About 'private equity group'|Blockbuster UK Acquired By Private Equity Group Gordon Brothers Europe
Amidst the battle over coal and cement plants, Dallas, Texas-based TXU is now getting ready to be bought by two equity firms. "Texas Pacific Group and Kohlberg Kravis Robert & Company, a buyout firm based in New York, may buy TXU Corporation," said writer Dan Piller. "With an enterprise value of $39 billion, TXU would be the largest equity bid ever." The TXU board of directors was set to meet this past weekend to vote on the proposal, according to Piller. The prospective TXU buyers say they would build fewer coal plants and the group promises only three new ones, cutting prices. "Negotiators say the deal is the first of its kind," said writer Elizabeth Souder. "The agreement is designed to clear TXU's name among environmentalists, consumers, regulators, and politicians after the plan to build 11 coal-fired power plants prompted substantial environmental debate in Texas." Souder said TXU officials won't comment on the offer, and the buyers have remained officially mum. An official with Texas Pacific contacted the environmental groups about a week and a half ago to propose talks, according to research. After a 17-hour meeting, the groups had an agreement. These are some of the points they agreed on: *Keep TXU's promise to cut total emissions of regulated pollutants 20 percent from current levels after the new plants are built. *Not to propose building any traditional, pulverized coal plants outside of the state. *Support federal legislation to impose a cap on carbon dioxide emissions and agree to cut TXU's own emissions to 1990 levels by 2020. *Join U.S. Climate Action Partnership, a group of ten industrial and financial companies that are urging the government to create a cap-and-trade program for greenhouse gases. *Pursue more wind power and double the amount TXU spends on energy efficiency programs to $80 million for the next five years. *Explore using coal gasification technology for subsequent plants. *Create a sustainability energy committee to advise the new company. "Cutting retail electricity prices isn't part of the environmental deal," reports Souder. "Such a move would please key Texas lawmakers who have filed legislation designed to cause prices to drop by limiting the size of power companies and forcing TXU to break apart." According to Souder, TXU executives have argued that Texas needs the plants to meet growing demand for power. Some people who oppose the plants speculate that TXU expected the new plants to strengthen the company's market position so much that it would discourage competitors from building their own plants in the state and would solidify TXU's position as the largest power company in the Texas market. |
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Private Equity Group - Blog Homepage Results
"Think About Private Equity" is the official blog of a New York-...chapter of the national community organizing group ACORN to bring awareness to New Yorkers about...
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