TXU proceeding with KKR/TPG merger after “Go-Shop” process ends

by PegNews wire

DALLAS — TXU announced today that the “go-shop” process has ended, during which no superior proposal was received to the definitive merger agreement announced February 26, 2007 with an investor group led by Kohlberg Kravis Roberts & Co. and Texas Pacific Group. Under the terms of the merger agreement, shareholders will be paid $69.25 per share following closing.

Under the terms of the merger agreement, TXU had the right to solicit other proposals through 12:01 a.m. on April 16, 2007. The TXU Board, acting through the Strategic Transactions Committee, solicited interest from over 70 potential purchasers, including U.S. utility companies, non-U.S. utility companies, other energy companies and financial sponsors and infrastructure investors. TXU entered into confidentiality agreements with ten of these entities and provided them confidential information regarding TXU and its subsidiaries.

TXU subsidiaries and the investor group expect to file a request for approval with the Nuclear Regulatory Commission and a filing with the Public Utility Commission of Texas this month. TXU subsidiaries and the investor group also expect to submit filings with the Federal Energy Regulatory Commission, the Federal Communications Commission and the U.S. Department of Justice (under the Hart-Scott-Rodino Act) within the next few months, but these are not expected to impact the timing of closing the merger.

TXU expects to hold its annual meeting and shareholder vote on the merger in the summer on a date to be determined.

Source: TXU