Zeev's Turnips Patch-No Politics (ZEEV)

[Joe Stocks]

TXU Corp. to Settle November 2004 Accelerated Share Repurchase Program
Monday May 23, 8:00 am ET


DALLAS, May 23 /PRNewswire-FirstCall/ -- TXU Corp. (NYSE: TXU - News) announced today that its 52.5 million accelerated share repurchase program initiated in November 2004 is complete.

Under the accelerated share repurchase agreement, Citigroup, the broker-dealer counterparty, borrowed 52.5 million shares of TXU Corp.'s outstanding common stock on November 26, 2004, which were immediately sold to and canceled by TXU Corp. On that date, TXU Corp. paid Citigroup an initial price of $64.57 per share for a total of $3.4 billion, subject to a future contingent purchase price adjustment (true-up) based on the actual price of the shares purchased by Citigroup. Since then, Citigroup has been purchasing TXU Corp. shares of common stock in the open market to return its borrowed shares.

Based on the $73.82 per share average price paid by Citigroup for the 52.5 million shares, TXU Corp. expects to pay Citigroup a net true-up settlement amount, including fees, of approximately $523 million. TXU Corp. anticipates funding the settlement within the next three business days from cash on hand and bank borrowings, which will ultimately be repaid with cash from operations.