I want to share with you an exchange that took place this morning on Capitalstool.com’s message board, The Stool Pigeons Wire, about the TXU leveraged buyout. There’s a lot more truth to these observations than you will ever see in the mainstream financial infomercial media. Poster potatohead pointed out a:
New form of monetization….. pigmen will own everything not the FED
*DJ TXU Corp. To Be Acquired For $69.25 A Share >TXU
*DJ Goldman, Lehman, Citi, Morgan Stanley To Be Equity Investors
*DJ Former Secy State Baker To Be TXU Invest Group Advisory Chmn
this is being done by the old boys network
Poster crazy_ate responded, (and herein your editor thinks lies the crux of the issue):
The part I like is the spin that pulling the permits on 8 of the 11 planned coal burning plants was done to appease the environmentalists. Seems to me this is only being done to  remove a huge CapEx expense from the near-term that they will probably never see a return on unless they hold the company for 20 years, and  reduce future capacity from the market which should allow for higher rates down the road.
WSE Contributor Lee Wheeler added this:
Funny how the two utility ETFs (UTH, XLU) are rising 4%+ on the “news” of a 12% premium buyout on TXU.
TXU is a 10% weight in UTH and a 6% weight in XLU. It was one of the few utes not already at its ATHs. It was 10% below the highs.
Did “news” come out that ALL utilities were being LBO’ed?
Finally, poster cwd related a conversation he had with a local politician in Texas, TXU’s home state.
I was talking to one of our local politicians Sat and she commented she was not sure about TXU our local power house.
I told I knew what was going to happen. After the deal is complete Henry Kravis is going to pull his 10% off the top and The company is not going to spend any money until there is a power shortage in a couple of years and then you can guess what is going to happen to rates. She looked at me and said that was probably correct.
It is nice to see they have become environmentalists.
If you want the real “read between the lines story” behind the “news” headlines, you certainly aren’t going to get it by reading the fluff from the so-called “journalists” in the mainstream infomercial media. They are nothing more than paid shills for the Street establishment, writing what their masters want them to write. They may not get direct orders, but they know which side their bread is buttered on. The real journalists are on the message boards like Capitalstool.com’s Stool Pigeons Wire. I will keep you posted on their insights from time to time.