TXU Hasn't Received Competing Bid, Doesn't Expect One

TXU said on Monday that it has not received a competing bid to the $32 billion takeover offer from Kohlberg Kravis Roberts and Texas Pacific Group, and its financial advisers do not expect it to receive one.

TXU said that Lazardhas advised the independent TXU board committee reviewing the takeover that it does not believe a superior proposal to the KKR and TPG offer will be submitted.

The power company, which agreed in February to the buyout, said it had solicited interest from more than 70 potential buyers as part of its 50-day "go-shop" agreement with its buyers, which allows it to pursue alternative transactions.

It said it had signed confidentiality agreements with nine groups, but that it has no formal offer as of yet and that it has no indication that any potential buyer is preparing a bid that would be superior in either price or transaction certainty to its agreed-upon offer.

The company, whose go-shop provision expires on April 16, said that it is still open to competing proposals and that it would continue to work with its advisers to determine if there are possible superior offers.

Under the terms of its agreement, if TXU agrees to another deal before April 16, it must pay a $375 million break-up fee. After that date, the break-up rises to $1 billion.

The company said that among the companies it solicited interest from were both domestic and foreign utility companies, other energy companies and financial sponsors and infrastructure investors.