Buyers show interest in TXU
APROACHES have been made by British and German groups to buy out troubled TXU Europe - thought to be worth more than £2bn.The electricity company may have to go into administration or sell out, if its investment status does not improve.
APROACHES have been made by British and German groups to buy out troubled TXU Europe - thought to be worth more than £2bn.
The electricity company may have to go into administration or sell out, if its investment status does not improve.
TXU Europe, which supplies electricity and gas to more than five million British customers, yesterday met financial advisers to discuss a possible sale of all or part of the business.
Eon, the German owners of Powergen, Britain's third largest generator, Scottish Power and Scottish and Southern have all made informal approaches to buy out the company.
A number of significant loss-making power purchase contracts with other UK generators has added to the company's downfall.
But the crisis deepened this week as the company's credit rating was cut to just above junk bond status meaning it was close to losing its investment grade status.
Most Read
- 1 Weather warning for Suffolk as thunderstorms expected to affect travel
- 2 A12 reopens after air ambulance called to three-lorry crash
- 3 Suffolk campsite named among the best in the UK by the Guardian
- 4 Company fined £12,000 for repeatedly failing to clear Ipswich flat's waste
- 5 Men convicted of kidnap and rape of Ipswich girl
- 6 Food review: ‘The Botanist in Ipswich lives up to the hype’
- 7 New Venezuelan restaurant to bring fusion of flavour to Ipswich
- 8 Forbidden Suffolk: 6 places you can't visit in the county
- 9 'Blood rain' could fall this week as thunderstorms move in
- 10 Cyclist injured after colliding with car in busy Ipswich road
If this happened TXU Europe would have to make repayments and go into administration or seek a buyer.
This news came as TXU Europe's US parent company threatened to withdraw a £451m lifeline, which was to be found through job cuts, renegotiations of loss-making contracts and complete disposals.