UPDATE 2-TXU recommends merger approval; CEO may leave

(Reuters) - TXU in proxy materials filed with the U.S. Securities and
Exchange Commission defended the $69.25-per-share offer from a
group led by Kohlberg Kravis Roberts & Co [KKR.UL] and Texas
Pacific Group [TPG.UL].




The company said the price was a "meaningful" premium to
its stock price and that it would probably not have done better
without the deal, the largest leveraged buyout in history.


Read more at Reuters.com Bonds News

Alliance Boots Bond Risk Rises as KKR Faces Higher Loan Costs to Fund LBO

(Bloomberg) -- The risk of owning Alliance Boots
Plc's bonds rose on expectations bankers underwriting the
leveraged buyout by Kohlberg Kravis Roberts & Co. will increase
interest margins to raise 9 billion pounds ($18.5 billion).

Credit-default swaps protecting 10 million euros of Boots
debt rose 10,000 euros to a record 420,000 euros today, according
to Societe Generale SA. KKR and bankers led by Deutsche Bank AG
have to close the syndication of the loans today under a
commitment deadline announced July 5. The bankers are likely to
offer improved terms to attract enough investors, said Sonia Van
Dorp, a credit analyst at Societe Generale.


Read more at Bloomberg Bonds News