Blackstone to Pay $4.7 Billion for Dynegy

The Blackstone Group, the private equity giant, agreed on Friday to buy Dynegy, the Houston power company that once sought to buy Enron, for $4.7 billion including debt, in the largest leveraged buyout so far this year.

The deal represents a reprieve for stockholders of Dynegy, whose shares have been sliding for several years as the company has struggled with sluggish demand. The shares, which had fallen 74 percent in the last 12 months, soared 63 percent on Friday to close at $4.53.

The weak economy and low natural gas prices have put independent power companies like Dynegy under pressure. In an effort to regain scale and reduce costs, several major deals have been struck in the power industry this year, including the $3.1 billion merger of Mirant and RRI Energy announced in April.

Read Full Article from New York Times

- Posted: 2010-08-13 20:31:08

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