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Is The TXU Take Out Is Smaller Than It Looks?

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Paul Kedrosky points out that the TPG-KKR buyout of TXU isn't quite as much of a "record setting deal" as it's being made out to be:

Given that a $45-billion sale of TXU to private equity firms Texas Pacific and KKR is apparently a done deal, it's worth thinking about some of the consequences. For starters, while this is a big deal, it isn't yet the largest in history. That honor still sits with KKR's 1988 deal for RJR Nabisco. Inflated to today's dollars, the then-$25-billion deal becomes a $63.2-billion deal.

Hmm. Paul Kedrosky is probably much smarter than we are. But when we ran $25 billion through our time-machine inflation calculators we came up with around $44.09 billion, which makes the TXU bigger indeed than the RJR Nabisco deal, even if it only beats it out by less than a billion dollars.

Takeaways from the TXU Buyout
[Infectious Greed]