TXU shares drop on power price (in Texas) manipulation report

[UpInArms]

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=5633224

NEW YORK, July 9 (Reuters) - The shares of TXU Corp. (TXU.N: Quote, Profile, Research) fell more than 4 percent on Friday after a Dallas television station broadcast audiotapes it said may show the Texas power company manipulated electricity prices.

But an industry analyst and the Texas utility both said the tapes -- which were provided by a rival power company and detail conversations among TXU traders early last year -- were not new.

"This thing has been hashed out fairly thoroughly. There's not a lot that's new here," said Bernstein & Co. analyst Hugh Wynne. "Frankly I'm a little surprised here."

TXU said the tapes had been handed over to state and federal investigators, who had not found any market manipulation by TXU. The company said it also made them available to media.

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"I believe that people are looking at this report unaware that these are the same issues that have been investigated and dismissed without merit multiple times by multiple government authorities, including federal court," TXU spokesman Chris Schein said.

...more...

just like the ballots in Florida were "counted", huh, Chris?