Icahn, Seneca Threaten Blackstone Bid For Power Co.

Oct 12 2010 | 1:07pm ET

A pair of hedge funds have thrown a monkey-wrench into the Blackstone Group's $4.7 billion buyout of power company Dynegy.

Carl Icahn's Icahn Enterprises has acquired a 10% stake in Dynegy and announced his opposition to the Blackstone deal. In a filing with the Securities and Exchange Commission, Icahn said it believed Houston-based Dynegy's "shares were undervalued" and that it does not "believe that the consideration agreed in the proposed merger is adequate."

Blackstone has offered $4.50 per share; Dynegy shares are currently trading above that. The private equity giant has said it will not offer more for the company.

Meanwhile, hedge fund Seneca Capital has taken a 9.3% stake in Dynegy. While Seneca has not announced its outright opposition to the Blackstone deal, it did say that it has "contemplated and reserve[s] the right to implement plans or proposals with respect to the issuer as a means of enhancing shareholder value, whether alone or with third parties."


In Depth

GSAM’s Papagiannis on Liquid Alternatives

May 25 2016 | 5:07pm ET

The popularity of liquid alternatives strategies has blossomed in recent years,...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...