Mergers News

Environmentalists hire banker for role in TXU deal

NEW YORK, March 8 (Reuters) - Environmental Defense, one of the environmental groups that was consulted by private equity investors seeking to buy TXU Corp. TXU.N, said late Wednesday that it had hired an investment banker to support its role in the takeover proposal.

The group, which met with representatives of Kohlberg Kravis Roberts & Co. and Texas Pacific Group before the deal was announced last month and put its stamp of approval on the $32 billion offer, said in a statement it hired Perella Weinberg Partners.

Perella Weinberg is a boutique investment bank started last year by Joseph Perella, a former Morgan Stanley banker.

The evironmental group said the bank would support its role as an advocate for environmental interests in connection with the deal and would help it better understand the financial aspects of the transaction that could affect the environmental commitments of the prospective buyers.

KKR and Texas Pacific have said that they will reduce to three from 11 the number of coal-based plants TXU had wanted to build and to increase its use of alternative energy sources. Sources familiar with the situation have said that TXU had already planned to scale back its building plan to five or six plants from 11.