(Reuters) - Texas-based electricity producer Vistra Energy Corp (VST.N) is in talks to buy Dynegy Inc DYN.N, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.
Dynegy’s shares rose about 20 percent, while Vistra’s stock inched up 3.6 percent.
Dynegy had a market capitalization of $1.21 billion and Vistra of $8.37 billion as of Tuesday close, according to Thomson Reuters data.
A deal could be announced as soon as next week, the Journal reported.
Vistra and Dynegy were not immediately available for comment.
Reporting by Taenaz Shakir in Bengaluru; Editing by Sriraj Kalluvila