PRIVATE EQUITY IN US UTILITIES SIGNALS A RETURN OF THE LBO
The recent announcements of utility acquisitions by private equity funds join a short, but apparently growing, list of utilities owned completely or partially by private investors. Questions are now arising within the utility and the government sectors about the motivations of these private equity takeovers, and whether the phenomenon of taking a public utility "private" is a trend or an anomaly, and indeed whether it is in the public interest.
- The leveraged buyout is the prime motivator.
- But suitable utility targets are limited.
- Some members of Congress show signs of wanting more scrutiny of these transactions in the future.
