Seneca Capital joins Carl Icahn in opposition of Blackstone’s Dynegy buyout

October 23rd, 2010
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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.
For Detailed Investor Profiles on these Investors, click below:
Icahn Associates (Carl Icahn)
Seneca Capital
Related People: Alexander J. Denner; Brett Icahn; Carl Icahn; Douglas Hirsch; Keith A. Meister*; Mitchell Raab; Scott Pearl
Related Entities: PAGS Investing LLC ; Seneca Capital International Master Fund; Seneca Capital Investments LLC; Seneca Capital Investments LP; Seneca Capital Management; High River Limited Partnership; Icahn Partners; Icahn & Co Inc; Icahn Associates; Icahn Enterprises (formerly American Real Estate Partners); Icahn Fund Ltd; Icahn Partners LP; Seneca Capital LP
Related Article Tags: Shareholder Activists, Corporate Raiders and Proxy Battles; Investment Management and Hedge Fund Firm Mergers, Acquisitions, Spin-offs and Transactions

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