media release, page-20

Allco looking to exit US power stations deal-report

Friday February 15, 2008, 8:03 am


SYDNEY, Feb 15 (Reuters) - Troubled Australian asset manager Allco Finance Group AFG.AX is trying to get out of a commitment to acquire a $1.48 billion portfolio of U.S. power stations, an Australian media report said on Friday.

The Australian Financial Review, in an unsourced report, also said that Allco had opened its books to 10 possible buyers, including Macquarie Group Ltd MQG.AX and private equity firm Texas Pacific Group [TPG.UL].

Allco's shares were hammered last month on concerns about its high debt levels and opaque business model and talk has swirled this week that the group is in buyout talks, and that its lenders had called in a corporate restructuring team.

Trading in Allco's shares has been suspended since Monday. The group was due to deliver first-half results on Friday, but has rescheduled the release for Monday.

In December, Allco's U.S. subsidiary AllCapital agreed to buy several power generation projects from utility Consolidated Edison Co ED.N.