Texas power company TXU Inc. is looking to spin its electric transmission business into a new public company that could be valued at more than $10 billion, sources have told The Post.
Dallas-based TXU, which has a market capitalization of nearly $25 billion, has hired Lehman Brothers to begin working on an IPO for its collection of power lines and distribution assets collectively known as TXU Electric Delivery, according to sources. Spokespeople for Lehman and TXU declined to comment.
The possible IPO filing, which was reported on Friday by industry trade Web site Sparkspread.com, could come within the next month, sources said.
The possible stock offering comes in the middle of TXU’s three-phase performance improvement program that started last year with the sale of non-core units, including its Australian affiliate and its fuels business.
In August, TXU’s Chairman C. John Wilder said in a conference call with Wall Street analysts that the company was keeping a close eye on the successful IPO of power transmission company ITC Holdings Inc.
The company’s stock has jumped more than 30 percent since its IPO in July, signaling high investor demand for electricity distribution assets.
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Powerhouse
TXU: Close: $104.23 (-1.40)