McDermott Advises on Leveraged Buyout Acqusition of TXU, the Largest LBO in History
NEW YORK (October 12, 2007) — McDermott Will & Emery represented Morgan Stanley & Co. Incorporated with respect to its equity investment in connection with the $45 billion leveraged buy out acquisition of TXU Corp., the Texas energy company. The transaction closed on October 10, 2007, and represents the largest leveraged buyout in history. The acquirer, Texas Energy Future Holdings Limited Partnership (TEF), is led by investors including Kohlberg Kravis Roberts & Co., Texas Pacific Group and Goldman Sachs Capital Partners. Morgan Stanley, Lehman Brothers and Citigroup also became equity investors at closing. With the completion of the merger, TXU Corp. changed its name to Energy Future Holdings Corp.
The transaction was led by New York corporate partners Stephen Older and Seth Goldsamt, and included Boston partner Greg Lawrence with respect to energy regulatory matters. The McDermott team also included Paul Kim (corporate), Wendy Cassity (corporate), Harold Davidson (corporate), Kumar Paul (tax), Joel Grosberg (regulatory), Shirley Fujimoto (regulatory).
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