Dynegy says board unanimously backs Icahn takeover
SAN FRANCISCO |
SAN FRANCISCO (Reuters) - Dynegy Inc's (DYN.N) board unanimously backed Carl Icahn's $665 million cash takeover of the power producer, saying on Thursday that the billionaire investor's offer is the best interests of all stockholders.
The $5.50-per-share deal struck by Icahn, Dynegy's largest shareholder, follows a failed $5-a-share bid by private equity company Blackstone Group LP (BX.N), which Icahn had opposed.
But Seneca Capital, Dynegy's second-largest shareholder with 9.3 percent of its shares, last week accused Dynegy's board of "reckless disregard" of its duty to shareholders, saying the company is worth $6 to $7 per share.
The offer from Icahn Enterprises LP IEP.N allows for Houston-based Dynegy to continue soliciting other buyers until January 24.
"There are no guarantees that this process will result in a superior proposal," Dynegy said in a statement on Thursday.
(Reporting by Braden Reddall; editing by Carol Bishopric)
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