Shares of Texas-based electric utility TXU Corporation (TXU) soared about 20% late Friday on word from CNBC's David Faber that the company is close to being acquired in what will be the largest leveraged buyout in United States corporate history.
TXU was highlighted in Peridot Capital's 2006 Select List as an undervalued gem in the midst of a very shareholder-friendly turnaround and it appears this proposed deal, unless it falls through at the last second, marks the end game for TXU investors.
Initially recommended at $50.19 per share about fourteen months ago, investors are set to book about a 40 percent return (excluding dividends) if the rumored $70 price tag is accurate. Congrats to everyone who held the stock up until now. I sold mine last year, but I'm still thrilled with these developments. If you would like to purchase a copy of our 2007 Select List, you may pick up the list of ten stocks for 2007 via PayPal.
TXU 1-yr chart
Disclosure: Author is short TXU.