If sale fails, TXU could break into 3 companies

TXU Corp. said Monday it probably would break into three separate companies if it can’t complete a $32 billion sale to private investors.

The company said regulatory and legislative challenges could force it to separate its power generation, distribution and electricity retailing divisions.

TXU made the comments in a regulatory filing as it launched a roadshow designed to persuade key shareholders to support the sale of the power company to investors led by Kohlberg Kravis Roberts & Co. and Texas Pacific Group.

Shareholders are scheduled to vote on the offer Sept. 7, with two-thirds support needed for approval.

In a filing Monday with the Securities and Exchange Commission, TXU argued – as it has before – that it is unlikely to get a better deal than the $69.25-per-share offer from KKR and TPG.

•Sears Holdings Corp. narrowed its second-quarter earnings guidance Monday and announced its second major share buyback program in a month.

The retailer, which owns Sears and Kmart stores, said it expects profits of $170 million to $185 million, or $1.13 to $1.23 a share, as it struggles with higher markdowns and sluggish sales. Last month, Sears said it anticipated earnings between $160 million and $200 million. Analysts surveyed by Thomson Financial predicted a profit of $1.13 a share.

The Hoffman Estates, Ill.-based company is scheduled to release financial results by the end of the month.

•A ruling by a federal appeals court cleared the way for NASCAR to prevent AT&T Inc. from featuring its logo on Jeff Burton’s No. 31 Richard Childress Racing Chevrolet.

The 11th U.S. Circuit Court of Appeals said Monday in its order that San Antonio-based AT&T lacks standing to challenge NASCAR’s decision.

The court, therefore, threw out a lower court’s ruling that prevented NASCAR from stopping AT&T’s plans. The appeals court remanded the case to the U.S. District Court in Atlanta for dismissal.

At issue is AT&T’s desire to change the Cingular logo on Burton’s car to the AT&T logo. AT&T bought Atlanta-based BellSouth Corp. last year, gaining full control of Cingular and has since rebranded the cell phone provider under the AT&T name.

NASCAR has tried to prevent the Cingular logo from being changed to the AT&T logo on Burton’s car because AT&T rival Sprint Nextel Corp. sponsors NASCAR’s premier series, the Nextel Cup, and has exclusive rights as the telecommunications company for the series.