Tuesday, 29 July 2014
Last updated 3 hours ago
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."
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…