KKR and TPG Capital, the US private equity groups, are facing a battle to secure shareholder approval for their $45bn buy-out of TXU after one of the Texas-based energy group’s largest investors said it opposed the deal. Mutual fund company Franklin Resources disclosed a 5 per cent stake in TXU in a regulatory filing and said the planned take-over at $69.25 per share was “significantly below TXU’s current actual value”. Franklin’s move comes ahead of a September 7 shareholder vote on the TXU deal, and adds uncertainty to the transaction on top of the need for TXU to secure $37bn in financing.

This entry was posted by Gwen Robinson on Wednesday, July 25th, 2007 at 5:38 and is filed under Capital markets, M&A, Private equity. Tagged with Franklin Resources, kkr, tpg, txu. Edit this entry.