Private Equity Digs Deep

TXU (TXU Quote), the subject of a huge private equity buyout deal announced in February, has set plans to forgo development of carbon-dioxide-belching coal-fired plants in favor a spate of nuclear facilities.

Such moves aren't going unnoticed by shops such as TPG Capital, Carlyle Group, Blackstone and high profile investor Wilbur Ross.

According to research firm Dealogic, the metals and mining sector last year played host to 102 private equity buyouts totaling $16.4 billion. That compares to 79 deals worth $7 billion a year earlier and 43 transactions worth $5.4 billion back in 2004.

So far this year, 12 metals buyouts have been completed, totaling $2.3 billion. Those figures don't count the recent Apollo-Xstrata deal.

One of the bigger private metals-and-mining deals has been TPG's $3.2 billion buyout of Aleris International, announced back in August.

Even tiny metals firms are getting some play. Idaho General Mining (GMO Quote) has received a letter from Chicago-based Coghill Capital Management asking it to discuss "possible business combination transactions," according to a regulatory filing with the Securities and Exchange Commission. Last Tuesday, the company's shares saw a 23% run-up on speculation that a deal might be in the works.

Coghill has a 26% stake in the Idaho mining operation, which has a market capitalization of about $290 million.