Tuesday, 21 October 2014
Last updated 7 hours ago
Feb 7 2011 | 1:02pm ET
With his bid to buy energy company Dynegy Inc. floundering and Dynegy's stock price creeping above his offer price, Carl Icahn moved to defend his offer for the company.
Icahn's hedge fund has offered $665 million for Dynegy in what the company says is the only offer on the table. But another hedge fund, Seneca Capital, which worked with Icahn last year to sink the Blackstone Group's $600 million bid for the company, said it is worth at least $1 per share more than Icahn is offering, and investors haven't rushed to tender their shares. In fact, as of the deal's first tender offer deadline last month, only 4.4% of shares had been tendered, leading Icahn to extend the offer until Wednesday.
Icahn is offering $5.50 per share. Dynegy stock is currently trading about $6.
Still, Icahn said Friday that falling natural gas prices make that valuation illusory.
"It doesn't take a great analyst to figure out that this is a negative, not a positive," Icahn said. "Therefore, I'm confused that Seneca believes Dynegy is worth between $7.50 and $8.50, since it was trading at only $2⅞ in August."
But whatever Dynegy is actually worth, Icahn himself admits he's surprised his own bid hasn't been trumped.
"We made a stalking horse bid," he explained. "I believed that higher bids would materialize and apparently Seneca did also. No other bids materialized."
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...