The $45 Billion Buyout?

Update: The deal was just announced. Download the press release here: TXU_Release.pdf

The Blackstone Group’s claim to the largest leveraged buyout might not last more than a month. Various press reports suggest that Kohlberg Kravis Roberts & Co. and Texas Pacific Group are nearing a deal for Texan energy giant TXU that could be valued at around $45 billion. This would be significantly larger than the $39 billion deal that Blackstone recently led for Equity Office.

TXU stock closed yesterday at $60.02 per share, but news of a pending bid drove it up to more than $70 per share in aftermarket trading. The company’s board is meeting this weekend to discuss the offer, and several terms remain to be negotiated. A recommendation or rejection is expected to come on Monday.