A week after the Dynegy Inc. (DYN) held a stockholder vote to consider terms of an acquisition by Denali Parent Inc., and affiliate of The Blackstone Group (BX), the company announced on 23 November that it intends to immediately commence an open strategic alternatives process to solicit proposals from potentially interested parties and carefully review its standalone restructuring alternatives. Shareholder voted down the offer by Blackstone at $5 per share in cash – the stock has risen over 10% since the announcement of the deal and is currently trading at $5.26. As part of the open strategic alternatives process, Dynegy's financial advisors will contact a broad group of potential strategic and financial buyers, including Seneca Capital and Icahn Associates. In addition to evaluating the potential sale of the company, a Special Committee of independent directors will evaluate the company's forecasts and current commodity and financial market conditions as well as Dynegy's strategic alternatives. Dynegy intends to retain an independent financial restructuring advisor to conduct a review that will include strategic alternatives to create stockholder value, including management's previous analysis of individual asset sales, debt restructuring and cost cutting opportunities. Goldman, Sachs & Co. and Greenhill & Co., LLC are serving as financial advisors for the open strategic alternatives process. Sullivan & Cromwell LLP is serving as legal counsel to Dynegy. Dynegy produces and sells electric energy capacity and ancillary services in the United States controlling a power generation portfolio consists of approximately 12,200 megawatts of baseload, intermediate and peaking power plants fueled by a mix of natural gas, coal and fuel oil.
“Dynegy Stockholders Given Opportunity to Vote Until November 23, 2010 To Permit Stockholders to Consider Terms of Amended Blackstone Merger Agreement,” Business Wire, 17 November 2010
“Dynegy to Commence Open Strategic Alternatives Process to Maximize Value for Stockholders,” Business Wire, 23 November 2010.
“Dynegy Inc. Announces Preliminary Results of Special Meeting of Stockholders,” Business Wire, 23 November 2010.
“Dynegy to Commence Open Strategic Alternatives Process to Maximize Value for Stockholders,” Business Wire, 23 November 2010.
“Dynegy Inc. Announces Preliminary Results of Special Meeting of Stockholders,” Business Wire, 23 November 2010.
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