Is the TXU deal in trouble now?

Kohlberg Kravis Roberts has taken some hits as of late, as have all financial sponsors. One more thing for it and Texas Pacific Group to worry about: The TXU deal. It has been out of the news a bit, given other events, but the opposition has never really gone away. A new critics has emerged in the form of mutual fund company Franklin Resources, which owns a 5 percent stake in TXU, according to a filing. The Financial Times has indicated that it thinks the current $45 billion offer is "significantly below" TXU's current value. A crucial shareholder looms early next month. Of course even if all the critics can be placated somehow, there is still the tricky issue of financing. It would need to raise more than $35 billion. Which is going to be hard, if not impossible in the short term. Stay tuned.

For more:
- here's the Financial Times item