TXU -No one linked to firm likely in SEC complaint

NEW YORK, March 5 (Reuters) - Texas power company TXU Corp. TXU.N said it is unlikely that anyone linked to the company was involved in suspected illegal insider trading before its announcement of a $31.8 billion buyout.

A federal judge on Friday granted an emergency order sought by the U.S. Securities and Exchange Commission to freeze as much as $5.4 million in investor assets for apparent insider trading on TXU call options ahead of a Feb. 26 announcement that the company would be bought by private equity firms.

The court called upon the unknown investors to identify themselves and their financial accounts.

"We do not expect that anyone affiliated with TXU will be named as a party," TXU spokeswoman Lisa Singleton said in a statement issued late on Friday.

The case is scheduled for a status hearing on March 7 in Chicago.

TXU said it took a number of steps to prevent premature disclosure of the deal with an investor group led by Kohlberg Kravis Roberts & Co. [KKR.UL] and Texas Pacific Group [TPG.UL] and does not have any reason to believe those measures were not effective in preventing leaks.

News of a TXU deal surfaced after the close of trading on Feb. 23. But the company's options and shares surged at least one day before those reports, prompting some analysts to question whether any investors already knew about the deal.

The SEC filed a complaint with the U.S. District Court in Chicago alleging that a group of unknown investors bought at least 8,020 call option contracts for TXU common stock in advance of the announcement and are in a position to receive more than $5.3 million in trading profits.

TXU said it is working with the SEC in its investigation and has already voluntarily provided the regulators with background information about the deal.