TXU Cuts Dividend, Will Sell Europe Units
TXU Corp. made another attempt to restore its financial footing, slashing its quarterly dividend by 80% and saying it would sell all or part of its European operations.
Shares in the utility and energy trader fell 31%, or $5.81, to close at $12.94 on the New York Stock Exchange.
TXU said it was cutting the dividend to meet the new requirements of the credit-rating firms for investment-grade credit. TXU’s board of directors declared a quarterly dividend of 12.5 cents per share of common stock, an 80% reduction from the previous quarterly dividend of 60 cents.
TXU also announced that its European operations would be sold or scaled back.
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