GE and Macquarie Bank bid on Texas utility

| 3/1/2006

General Electric Co. is in line to buy into the largest power utility in Texas at a cost of $5 billion. But that’s not all that’s in the cards.

An Australian investment company, Macquarie Bank Ltd. – parent company of a major stakeholder in private leases of the Chicago Skyway, Indiana Toll Road and other U.S. infrastructure – is said to be in line to immediately purchase 49 percent of the Texas utility from GE after the initial transaction.

The Wall Street Journal reported that TXU Corp., the largest electrical company in Texas, is selling off part of its transmission and substation operations to invest capital in other areas, including power generation.

GE is reportedly the high bidder so far, with two other companies in the running, The Journal reported.

GE, which would hold 51 percent of TXU Corp. if the deal goes through, has dedicated $10 billion to investing in new ventures through 2007, The Journal reported.

TXU Corp. is far from getting out of the industry. The corporation plans to use the investment capital to build two new power plants at a cost of $2.5 billion.