Icahn Buys Power Producer Dynegy for $665 Million

Billionaire investor Carl Icahn’s firm, Icahn Enterprises, will buy power producer Dynegy for $665 million in cash, Reuters reported. The deal comes after Dynegy rejected a $602 million bid from buyout shop Blackstone at the end of November. Dynegy’s current debt stands at $3.95 billion, Reuters said. Goldman Sachs and Greenhill & Co advised Houston-based Dynegy on the deal.

(Reuters) – Power producer Dynegy Inc agreed to be bought by Icahn Enterprises LP, a firm controlled by billionaire investor Carl Icahn, for $665 million in cash.

The offer of $5.50 a share comes after Dynegy rejected private equity firm Blackstone Group’s $602 million bid on Nov. 23. Dynegy’s current debt stands at $3.95 billion.

The offer by Icahn is 10 percent more than Blackstone’s bid, Dynegy said in a statement, adding that it will continue its open strategic alternatives process, and will solicit superior bids until Jan. 24 next year.

Icahn Enterprises (IEP) will start a tender offer for Dynegy shares by Dec. 22. IEP now owns about 9.9 percent of Dynegy shares.

Goldman Sachs & Co and Greenhill & Co LLC are the financial advisers to Dynegy in the deal.

Houston-based Dynegy’s shares closed at $5.45 on Tuesday on the New York Stock Exchange. They were up almost 2 percent Wednesday in trading before the bell.

For the alerts, please double click [ID:nASA0195V] (Reporting by Arup Roychoudhury in Bangalore; Editing by S. John Tilak)