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.
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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.