CZR News & Analysis
A Record Buyout Turns Sour for Investors
29 Feb 2012 EST - The New York Times
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Struck at the peak of the buyout boom five years ago, the $45 billion acquisition of the Texas energy giant TXU — the biggest leveraged buyout in history — has been a painful investment for its private equity owners.
They did not need Warren E. Buffett to remind them how bad things were.
America’s most famous investor, in his annual shareholder letter on Saturday, highlighted his $2 billion wrong-way bet on the bonds of the company, which its new owners have renamed Energy Future Holdings. He called the investment “a big mistake” and said it was at risk of losing all of its value.
“In tennis parlance, this was a major unforced error,” Mr. Buffett wrote.
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