As the
credit
crunch threatens TXU's $45 billion leverage buyout by Kohlberg Kravis
Roberts & Co. and TPG, the Texas utility is preparing a plan B that could
entail a three-way breakup,
according
to a Reuters story. On Monday, TXU cited ongoing challenges from the
market and legislators as a reason for the potential breakup. TXU needs
two-thirds of its shareholders to approve the deal in a Sept. 7 vote. TXU's
largest shareholder Franklin Resources Inc.
vowed
July 24 to oppose the deal.
Full coverage will come later in The Daily Deal and on
TheDeal.com.
By Edward Schneidman, Michael Blair and David Malinger, Mayer Brown
Real estate sponsors that might wish to undertake an IPO will need to consider a wide variety of issues and begin to take action long before the first filing with the SEC.
Paulson's proposal to purchase an equity stake in Yellow Pages publisher Idearc is the second time in recent months an investor group has used its prepetition debt position to execute a bargain price 'exit LBO.'
