The Time's Right for TXU

Updated from 7:12 a.m. EST

The proposed leveraged buyout of Texas electricity provider TXU (TXU Quote) by private equity firms Kohlberg Kravis Roberts and Texas Pacific Group probably couldn't have come at a better time.

Short-term dynamics have beaten up TXU's stock pretty severely over the last six months, even though the long-term outlook for the company is considered by most analysts to be very positive.

Undervalued stock prices combined with strong long-term profit potential make for a good takeover target. Finding such a company is rare, but TXU has likely been appearing on value stock screeners for a while, according to analysts. ...