TXU: Environmentalists at the gates
Lots of people want to claim credit for what happened with TXU – the company itself, the private equity firms that bought it, the banks that advised both of the parties, the NGOs that lobbied intensively against it, and the Texas state regulators that threatened to scupper TXU’s business plan.
"It’s a landmark deal that drew a line in the sand. That a bank was prepared to walk away from a deal shows that broader factors can matter in financial markets. And TXU shows that climate change matters to the utility sector. I hope this is not lost in a short-term story about the repricing of risk"
One thing is clear: as a result of the world’s largest ever leveraged buyout, one of the world’s biggest utilities radically changed its business strategy to make it more environment-friendly.