Monday, 29 August 2016
Last updated 2 days ago
Nov 17 2010 | 12:27pm ET
The Blackstone Group and Dynegy Inc. are doing everything they can to push through the private equity giant's takeover of the power company.
Yesterday, Blackstone raised its bid more than 10% to $5 per share, valuing Dynegy at $4.77 million. Today, the Houston-based firm gave shareholders another week to consider that offer, adjourning its shareholder meeting until Nov. 23. Votes had been due today.
Neither move is likely to assuage the deal's staunchest opponents, hedge funds Icahn Associates and Seneca Capital, which together own nearly 20% of Dynegy's shares.
Carl Icahn said yesterday that defeating Blackstone's bid for Dynegy will open the company up to more suitors and more lucrative deals. The famed corporate raider indicated he might even put together a bid of his own.
By contrast, Dynegy is warning shareholders to expect a serious haircut as a consequence of a "no" vote. CEO Bruce Williamson denied Icahn's prediction of better bids, noting that none were made while Dynegy was shopping itself in September, and said rejecting the Blackstone offer will cause share prices to plummet.