In today’s Dallas Morning News, there was a study about the benefits of TXU going private.  The study concludes:

The benefits supporting going private would have occurred even if TXU stayed a public company.

Going private is likely to lead to higher energy prices.

Going private will lead to reductions in employee benefits.

If this study is correct, is there any wonder about why TXU would want to go private?  Think about it.  If the study is correct, that would mean:

The company would pursue the same strategy as a private company that it uses as a public firm (so there is no additional cost).

The company would be freed from many of the reporting requirements that public companies face.  As a result, it can save money. 

The higher energy prices would lead to more profit.

As a private company, it would be likely to cut employee benefits and that too would lead to more profit. 

How will TXU going private impact you?     

Filed by Coleen Davis at 3:41 pm under Business Acumen, Business Articles, Solving Problems