GE, Australian Bank Vie for TXU's Distribution Assets
General Electric Co. and Australian investment bank Macquarie Bank Ltd. are both vying for a stake in TXU Corp.'s distribution business in a deal estimated to be around US$5 billion, reported the Wall Street Journal on Feb. 27, 2006.
As of press time, TXU, the largest electricity company in Texas, U.S., was weighing whether to accept the bids, people familiar with the proposals told the newspaper. The sources added that TXU could reach a final deal within a matter of weeks, but also could decide against bringing in a partner after all. In the deal under discussion, TXU would spin off its poles, wires and substations to form a newly created company, selling a 49% stake in it to an outside investor, said the Wall Street Journal.
This potential deal comes on the heels of the U.S. lifting a regulation on utilities. Under the Public Utility Holding Company Act (PUHCA), which was repealed on Feb. 8, 2006, utilities could only provide energy to a small region, and nonutilities could only own up to a 10% stake in a utility.
Want to use this article? Click here for options!
© 2012 Penton Media Inc.
Acceptable Use Policy
Comments are the sole responsibility of the person posting them. T&D World will not edit postings. If T&D World editors deem any comment inappropriate, we will preempt or remove the posting.
General Rules: T&D World will not allow comments that are found to be degrading based on gender, race, class, ethnicity, national origin, religion, sexual orientation or disability. Neither will epithets, abusive language or obscene comments be allowed.
blog comments powered by Disqus
