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Troy Fraser Loves The Free Market


At least when it comes to the telecommunications industry. The Texas state senator’s commitment to capitalism, however, does not extend to New York hedge funds or private-equity firms or their designs on the Lone Star State’s electric utilities.

A powerful Texas state senator warned against a takeover by hedge funds of the power distribution unit of bankrupt Energy Future Holdings and said the state would prefer an owner with a long-term view.

Senator Troy Fraser told Reuters on Friday that Texas prefers that the new owner of the power distribution unit, Oncor, invest cash in the business, and would be concerned about any deal that increases debt levels.

"My concern is New York hedge funds have a short-term approach," he said by phone. "The view of Texas is obviously we're interested in someone looking at the long-term strategy or solution, rather than someone who is trying to buy it and flip it."

Texas lawmaker warns against hedge funds ‘flipping’ Energy Future unit [Reuters]