TXU shareholder now to vote "yes" on buyout offer
WASHINGTON (Reuters) - A major shareholder in Texas power company TXU Corp. TXU.N said it is changing its vote on a buyout offer from private equity firms due to "changing market conditions," and now intends to support the merger.
Franklin Resources Inc, which owns 5 percent of TXU's outstanding stock, said in a filing with the U.S. Securities and Exchange Commission on Thursday that it had originally believed the buyout offer from Kohlberg Kravis Roberts & Co. and TPG Capital LP was not in the best interest of TXU shareholders.
But said it will now vote yes on the buyout offer "due to changing market conditions in the intervening period of time."
TXU agreed earlier this year to be bought by KKR and TPG Capital for $69.25 a share. TXU has set a September 7 shareholder vote, where it needs two-thirds approval for the deal to go through.
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