TXU is settling shareholder lawsuits aimed at halting its $32 billion leveraged buyout by a consortium led by TPG and Kohlberg Kravis Roberts, according to documents TXU filed with the SEC last week. No money will change hands, but TXU’s termination fee — money TXU would pay if the buyout doesn’t take place — would be reduced to $925 million from $1 billion, according to the filing. The settlement agreement requires court approval, and shareholders are scheduled to vote on the deal on Sept. 7.
Three lawsuits, filed in February, March and July in U.S. District Court in Dallas, sought to stop the sale claiming that the TXU board of directors was mismanaging the company by approving the sale and because the proxy statement was incomplete.
