Icahn Demands Two Dynegy Board Seats

Mar 2 2011 | 8:55am ET

Having failed in its efforts to buy the company, hedge fund Icahn Enterprises is seeking a major voice on Dynegy Inc.'s board of directors.

The New York-based firm has said it wants two seats on the power company's board, the same representation demanded by its adversary in its proxy battle, hedge fund Seneca Capital. Icahn owns about 15% of Dynegy's shares, with Seneca holding about 12%.

Icahn said yesterday his firm continues "to have discussions with representatives of the company regarding the appointment" of its two nominees.

Dynegy's entire board of directors, as well as its CEO and CFO, resigned last month after shareholders rejected Icahn's $665 million buyout offer. The company then offered a single seat on an interim board to both Icahn and Seneca.

Icahn's failure was the second by a major alternative investments firm to buy Dynegy in the past several months. Icahn and Seneca joined forces to defeat an earlier, lower offer from the Blackstone Group.


In Depth

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...