Goldman Sachs and Wall St. Go Green

Goldman Sachs got environmentalists to embrace a utility they loved to hate


What to do? Paint the utility green, naturally. Goldman advised its clients to strike a massive compromise with environmentalists: First, nix plans for all but three of 11 coal-fired plants TXU intended to build. And invest $400 million in energy-saving initiatives, like wind power. It won a green thumbs up from environmentalists, who applauded the role of Wall Street’s top M&A firm. “Goldman’s willingness to make the environment a key component of the deal” helped broker a truce, says Fred Krupp, president of the advocacy group Environmental Defense. With the air cleared, TXU’s board last week accepted KKR and Texas Pacific’s record $45 billion leveraged-buyout offer.

Newsweek