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.