VOA慢速英语 2007 0302a

TXU logo

Big business deals do not often come with a promise to cut greenhouse gases. But that was part of a deal this week for TXU, the biggest electric company in Texas. Its board of directors agreed to a buyout offer led by two private equity¹ groups, Kohlberg Kravis Roberts and Texas Pacific.

They are offering to buy all shares in TXU and take the company private. That means it would stop trading on a public stock exchange.

A leverage² buyout depends heavily on borrowed money, often for the purpose of selling the company later. This leveraged³ buyout would be the biggest yet -- an estimated value of around forty-five billion dollars, including debt.

KKR and Texas Pacific Group would take responsibility for more than twelve billion dollars owed by TXU. They would add twenty-four billion dollars in new debt through borrowing to finance the sale.

The proposal calls for them to each pay two billion dollars in cash. Investment banks would provide an additional three billion dollars. And banks would also provide a one billion dollar unsecured loan known as an equity bridge.

One of the unusual things about this proposal is that utilities are not a traditional target of leveraged buyouts. Utilities provide public services like power and water.

TXU just reported two and one-half billion dollars in profits last year, up fifty percent from the year before. But utilities often have a lot of debt because of high operating costs. At the same time, states may limit rates if prices rise too high.

Most unusual about the deal, however, are the promises made by KKR and Texas Pacific. These buyout specialist groups say they will cut electricity prices ten percent and offer price protection through September of two thousand eight.

Also, to reduce carbon emissions⁴ linked to climate change, they promise to build fewer power stations that burn coal than TXU had planned. And they promise to explore greater use of alternative and renewable fuels. Two activist⁵ groups, Environmental Defense⁶ and the Natural Resources Defense Council, supported the deal.

Critics, however, say TXU may be worth more than what is being offered. Shareholders⁷ cannot vote on the proposal before April sixteenth. For now, the company may consider any competing offers.

And that's the VOA Special English Economics Report. This week, the top story in financial markets was the sudden flight from risk. A full report -- tomorrow on the program IN THE NEWS. I'm Mario Ritter.

1 equity   

n.公正，公平，（无固定利息的）股票

参考例句：

• They shared the work of the house with equity.他们公平地分担家务。
• To capture his equity,Murphy must either sell or refinance.要获得资产净值，墨菲必须出售或者重新融资。

2 leverage   

n.力量，影响；杠杆作用，杠杆的力量

参考例句：

• We'll have to use leverage to move this huge rock.我们不得不借助杠杆之力来移动这块巨石。
• He failed in the project because he could gain no leverage. 因为他没有影响力，他的计划失败了。

3 leveraged   

促使…改变( leverage的过去式和过去分词 )； [美国英语]杠杆式投机，（使）举债经营，（使）利用贷款进行投机

参考例句：

• Chrysler has traditionally been a highly leveraged company. 克莱斯勒一向是一家周转十分灵活的公司。
• Leveraged recaps have become popular for a number of reasons. 杠杆资本重组的大行其道有好几个原因。

4 emissions   

排放物( emission的名词复数 )； 散发物（尤指气体）

参考例句：

• Most scientists accept that climate change is linked to carbon emissions. 大多数科学家都相信气候变化与排放的含碳气体有关。
• Dangerous emissions radiate from plutonium. 危险的辐射物从钚放散出来。

5 activist   

n.活动分子，积极分子

参考例句：

• He's been a trade union activist for many years.多年来他一直是工会的积极分子。
• He is a social activist in our factory.他是我厂的社会活动积极分子。

6 defense   

n.防御，保卫；[pl.]防务工事；辩护，答辩

参考例句：

• The accused has the right to defense.被告人有权获得辩护。
• The war has impacted the area with military and defense workers.战争使那个地区挤满了军队和防御工程人员。

7 shareholders   

n.股东( shareholder的名词复数 )

参考例句：

• The meeting was attended by 90% of shareholders. 90%的股东出席了会议。
• the company's fiduciary duty to its shareholders 公司对股东负有的受托责任