The current market turmoil has all but frozen merger activity in the energy sector for now, but NRG Energy--frequently mentioned as a ripe buyout target--still seems to be flirting with ideas of consolidation.
According to NRG President and Chief Executive Officer David Crane, the company is "completely amenable" to being on either end of a takeover deal, "whichever one creates more shareholder value."
In a recent interview with Forbes.com, Crane said that merger activity in the power sector is likely to be stalled in the coming months due to turbulence in the debt markets. However, he added that NRG (nyse: NRG - news - people ), a New Jersey-based energy wholesaler, wants to lay itself "at the crossroads of consolidation" in case a potential deal becomes available.
His comments are likely to perk up the ears of potential buyers. When a private equity consortium led by Kohlberg, Kravis and Roberts earlier this year announced plans to buy TXU Corp. (nyse: TXU - news - people ), there was immediate speculation that NRG was undervalued and could be the next candidate in the private equity buyout wave.
Crane says private equity's interest in the power generating sector "seems like a distant memory," given the mess in the markets. Congress is also considering a massive tax increase on private equity, which could further stall activity. Any future mergers will probably be along the traditional lines of power companies buying out their competitors, Crane says.
"I don't see any particular advantage in selling to private equity," says Crane, "but really, our view ... is that our sector is still extremely fractured and it has to consolidate. And the only question is when, by whom and at what price."
