TXU: The New Record Holder

Kohlberg Kravis Roberts & Co. and Texas Pacific Group have agreed to acquire Dallas-based energy company TXU Corp. (NYSE: TXU), in a transaction valued at $45 billion. This would be the largest leveraged buyout in history, topping Blackstone Group's recent $39 billion deal for Equity Office. Under terms of the TXU agreement, company shareholders would receive $69.25 per share, and TXU would then reorganize into three independently-managed businesses. In addition, the new owners would reduce the number of planned coal-fuel generation units from 11 to three. Other equity participants would include GS Capital Partners, Lehman Brothers, Citigroup and Morgan Stanley. www.txucorp.com