Gas power giant Dynegy accepts $665m. bid from Carl Icahn

December 15, 2010 16:46
1 minute read.


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

NEW YORK — Billionaire investor Carl Icahn appeared to have wrested Dynegy Inc. away from The Blackstone Group, as the Houston power plant operator on Wednesday accepted Icahn's bid to buy the company for $5.50 per share.

Icahn, who owns a 9.9 percent stake in Dynegy, had opposed Blackstone's offer of $5 per share. He bid 10 percent higher at $665 million, and Dynegy said Icahn would support even sweeter deals from other players.

Calls to Blackstone and Seneca Capital, another prominent Dynegy shareholder, were not answered Wednesday morning.

Dynegy had been considering a takeover for several months as natural gas prices slumped and the company was forced to book millions of dollars in asset impairment charges. The company reported a net loss of $1.25 billion in 2009 and another $70 million loss in the first nine months of this year. Dynegy also holds $3.95 billion in debt.

With the economy on the mend, however, shareholders are looking for a rebound in energy prices and energy companies like Dynegy. They sided with Icahn, who thought Blackstone's offer was too low.

Blackstone's offer was thought to be "highly misrepresenting the future potential of power markets," said RBC Capital Markets analyst Lasan Johong.

Related Content

Breaking news
August 18, 2018
Ukraine, Iran and human rights on agenda for talks with Putin - Merkel