Icahn Takes Blackstone’s Place Bidding For Dynegy

Dec 16 2010 | 1:14am ET

Icahn Enterprises helped sink the Blackstone Group’s bid to buy power company Dynegy Inc. Now, the hedge fund is moving to take the private equity giant’s place.

New York-based Icahn struck a deal to buy Dynegy for $665 million. That’s 10% more than Blackstone offered in a bid rejected by Dynegy shareholders.

The power company still has until Jan. 24 to find a higher bid under the terms of the agreement.

It is unclear whether Icahn’s ally in the battle against Blackstone, hedge fund Seneca Capital, will remain on its side. Seneca has said Dynegy is worth $6.50 per share; Icahn is offering $5.50.

It may not need its support, however. Some 37% of Icahn’s fellow shareholders backed Blackstone’s lower bid, and the hedge fund owns about 10% of Dynegy. If the firm can convince just about 3% of shareholders who did not vote for Blackstone’s deal, Seneca’s support will not be necessary.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


Hedge Funds Swarm Into Palm Beach

Oct 27 2016 | 2:32pm ET

As the first flakes of snow fall on New York's northern suburbs, Dan Weil of South...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...