In what can only be described as a mega-deal, investment firm Kohlberg, Kravis, Roberts, & Co. are paying a 15% premium over market close, $69.25 per share, to take TXU Corp private. The $31.8 billion dollar deal is the largest ever to take a company private.
Why do we care? Simple, as a consequence of the takeover, TXU’s planned 11 mega-coal plants will be reduced to 3 as a result of the acquisition and stronger environmental policies are likely to be enacted. The reduction will displace some 56 million tons of carbon emissions, equivalent to preventing 10.2 million new cars from appearing on the road.
This is an interesting development to be sure. Let’s hope the focus shifts from coal to other, less polluting generation mechanisms as a private company. But axing 8 planned coal plants is a good start.
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KKR led consortium acquires TXU
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As a person living in TXU’s service area (actually, I’m a TXU customer), I’m pleased to see the 8 new coal plants removed from the plan. It’s a good start.
I agree Dave, it is a good start.
What about the other three? What can we do to get them cancelled as well?
Every time I see TXU mentioned in any link whatsoever, I respond. That is, except for TXU’s own websites, which have no place for feedback. Not at all surprising. Remember “Ma Bell”, and the so-called break-up of that monopoly? Even the dumbest of us eventually realized that there was no break-up. Ma just came up with a few “competitors” names and “Competed against herself. So, did anyone really think that TXU, second only to Exon, was going to be different? From a human level, I am writing from my very recent experience of not receiving a bill, not receiving a reminder, and subsequently, getting cut off, with no knock on the door and being left with a grandson who had just gotten out of children’s hospital. I was with a “competitor” company, so it took TXU 13 hours to admit their mistake and reconnect. My bill comes from TXU, and TXU came 13 hours later to reconnect. It simply isn’t Reliant. It’s very UNreliable TXU! It’s time that Americans wake up to what is really going on around them, while they struggle to make a living for these rulers.