Blackstone Raises Dynegy Bid to $5 a Share

The Blackstone Group said Tuesday that it has raised its offer for Dynegy to $5 a share, up from its previously agreed upon price of $4.50 a share. The New York PE firm said in a statement Tuesday that the $5 proposal is its “best and final offer.” The increase comes after two of Dynegy’s largest shareholders have criticized Blackstone’s bid as too low.


Blackstone Capital Partners V L.P. today announced its affiliate’s intention to increase the cash price per share under its previously announced merger agreement with Dynegy Inc. (NYSE: DYN) to $5.00 per share. This offer represents an 11.1% increase over the $4.50 per share cash price contemplated by the existing merger agreement and a 79.9% premium to Dynegy’s closing share price on August 12th, the day prior to the announcement of the transaction.

Blackstone has notified Dynegy’s Board of Directors that this proposed $5.00 per share cash price represents Blackstone’s best and final offer and remains subject to agreement to the terms of an amended merger agreement.


All statements other than statements of historical fact are statements that could be deemed forward looking statements. This communication includes “forward looking statements” that are subject to risks, uncertainties and other factors. The reader is cautioned not to rely on these forward looking statements. All forward looking statements are based on information currently available to BCP V and are qualified in their entirety by this cautionary statement. Neither BCP V nor Dynegy undertakes to update any such forward looking statements or other statements included in this communication.


In connection with the Agreement and Plan of Merger, dated as of August 13, 2010, providing for the acquisition of Dynegy by Denali Parent Inc., an affiliate of BCP V, Dynegy filed a definitive proxy statement with the SEC on October 4, 2010 (the “Proxy Statement”) and commenced mailing the definitive proxy statement and form of proxy to the stockholders of Dynegy. BEFORE MAKING ANY VOTING DECISION, DYNEGY’S STOCKHOLDERS ARE URGED TO READ THE PROXY STATEMENT REGARDING THE TRANSACTION CAREFULLY AND IN ITS ENTIRETY BECAUSE IT CONTAINS IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Dynegy’s stockholders are able to obtain, without charge, a copy of the definitive proxy statement and other relevant documents filed with the SEC from the SEC’s website at Dynegy’s stockholders are also able to obtain, without charge, a copy of the definitive proxy statement and other relevant documents by directing a request by mail or telephone to Dynegy Inc., Attn: Corporate Secretary, 1000 Louisiana Street, Suite 5800, Houston, Texas 77002, telephone: (713) 507-6400, or from the Dynegy’s website,


BCP V, Denali Parent Inc. and Denali Merger Sub Inc. (collectively “Blackstone”) and certain affiliates and representatives of Blackstone may be deemed to be participants in the solicitation of proxies from the stockholders of Dynegy in connection with the transactions and the Proxy Statement. Information concerning the interests of Blackstone and its affiliates and representatives in the solicitation is set forth in the Proxy Statement.


The Blackstone Group is one of the world’s leading investment and advisory firms. Its alternative asset management businesses include the management of private equity funds, real estate funds, hedge funds, credit-oriented funds, collateralized loan obligation vehicles (CLOs) and closed-end mutual funds. The Blackstone Group also provides various financial advisory services, including mergers and acquisitions advisory, restructuring and reorganization advisory and fund placement services. Further information is available at