Seneca Capital joins Carl Icahn in opposition of Blackstone’s Dynegy buyout
|October 23rd, 2010||
|Seneca Capital recently stated that it believes that Blackstone Group (NYSE: BX) is not offering a large enough price to buy Dynergy, agreeing with the sentiments of the power company’s other top shareholder, Carl Icahn. According to Reuters, Seneca Capital, a 9.3% shareholder of Dynergy, is arguing that Blackstone’s offer prices each share at $4.50, or not even one-third of their replacement cost. |
But the $543 million Blackstone deal could eventually help Dynegy out of its $4.7 billion debt and Dynegy continues to defend the transaction, reportedly stating that Seneca has not been “a significant long-term holder of the company’s stock.”
Since the announcement of this deal, Dynegy’s shares have traded above the bid price. Dynergy shareholders will vote to approve the bid November 17.
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