TXU- Largest private equity buyout ever

[Longhorns]

KKR seen leading massive TXU buyout
Deal for the biggest power company in Texas would be largest private equity takeover ever; TXU shares jump.
February 23 2007: 6:53 PM EST


NEW YORK (Reuters) -- Private equity firms Kohlberg Kravis Roberts & Co. and Texas Pacific Group are expected to bid to acquire all of TXU, the biggest power company in Texas, in what would be the largest private equity takeover ever in terms of enterprise value, various reports said Friday.

http://money.cnn.com/2007/02/23/news/companies/kkr.reut/index.htm?postversion=2007022318

 

[Scalper007]

Stock has been going up all day yesterday and today, and NOW the news comes out. WTF is up with all this insider trading? WTF is the sec doing?? Surely someone knew about this and traded illegaly and they can just walk away with an easy 10 points. Stock is now at 71...

 

[sprstpd]

Quote from Scalper007:

Stock has been going up all day yesterday and today, and NOW the news comes out. WTF is up with all this insider trading?

They all just had a hunch about TXU. You know, one of those gut feeling trades.

 

[thegazelle]

http://www.cboe.com/tradtool/webcast.aspx

Check it. Midsession report - unusual option activity in TXU options. 92% of them bought ON THE OFFER. Shotgun approach with DRJ but every now and again you get a big one.

 

[damon_achey]

Is it possible that KKR was the one that ran the price up? If I was going to buy something outright at a premium and I had the chance to by part of it lower and then more options on parts of it lower why wouldn't I? (up to the legal limit)

It could move the price substantially, but as long as it's lower than the buyout it's like locking in a small discount and I don't think a conflict of interest.

 

[thegazelle]

Quote from damon_achey:

Is it possible that KKR was the one that ran the price up? If I was going to buy something outright at a premium and I had the chance to by part of it lower and then more options on parts of it lower why wouldn't I? (up to the legal limit)

It could move the price substantially, but as long as it's lower than the buyout it's like locking in a small discount and I don't think a conflict of interest.

Diabolical! :eek:

 

[damon_achey]

Quote from thegazelle:

Diabolical! :eek:

Sorry, I was actually replying to Scalper007's accusation that it must be illegal trading that lead the price up and offered a more plausible explanation. (not that illegal insider trading never happens, but seems lots of people jump strait to that conclusion.

 

[S2007S]

looks like thursday morning someone got the news.

And to think the Equity Office buyout just weeks ago was the biggest, im sure the next private equity buyout will be as high as $50 billion. How long can this last, these buyouts are getting bigger and happening on a daily basis now.

The following list ranks the largest buyouts or bids by private equity firms and others, according to research firm Dealogic. The values of the deals exclude debt. TARGET BUYER DEAL VALUE 1. TXU Corp.* KKR, Texas Pacific $32.6 bln 2. RJR Nabisco Inc. KKR $25.1 bln 3. Equity Office Properties Blackstone $22.9 bln 3. HCA Inc. Buyout group $21.0 bln 4. Clear Channel Bain, THLee $18.6 bln 5. Freescale Semiconductor Buyout group $17.6 bln 6. Harrah's Entertainment Apollo, Texas Pacific $16.8 bln 7. Kinder Morgan Inc. Buyout group $14.6 bln 8. Univision Communications Buyout group $12.2 bln 9. SunGard Data Systems** Buyout group $11.3 bln 9. Albertsons Inc.** Buyout group $11.3 bln NOTE: *KKR and Texas Pacific Group may make an offer of roughly $70 per share for TXU, the source said. A deal has not been announced.

 

[S2007S]

This should give the dow and the rest of stocks a bounce on monday.

 

[Scalper007]

Quote from damon_achey:

Sorry, I was actually replying to Scalper007's accusation that it must be illegal trading that lead the price up and offered a more plausible explanation. (not that illegal insider trading never happens, but seems lots of people jump strait to that conclusion.

So you think it was by chance that txu ran up for two straight days while the overall market was going down? If that's your opinion, then so be it, but I just can't accept that. Its the same crap that happened in cbss the other day. No one says a word, stock goes up 4 points on huge volume the day before the buyout and the next morning it's bought out.