Icahn Remains Opposed to Proposed Blackstone Acquisition of Dynegy at $5.00 Per Share
NEW YORK, Nov. 16, 2010 /PRNewswire/ -- Carl Icahn today released this statement, indicating that he will be voting against the proposed acquisition of Dynegy by Blackstone for the following reasons:
- I believe that, even at $5.00 per share, the proposed Blackstone acquisition undervalues Dynegy. Today's $.50 per share increase, coming only one day after Blackstone stated that the $4.50 price is "a full and fair valuation" reassures my belief that the Dynegy/Blackstone transaction leaves too much shareholder value on the table for Blackstone. I have also considered that in a November 15, 2010 report JP Morgan stated that it is "introducing a December 2011 price target of $7, up from our prior December price target of $5.00."
- Under the merger agreement between Dynegy and Blackstone, Blackstone was granted the right to match a superior offer, and to enter into an exclusive arrangement with NRG, who before that time had been directly negotiating a potential transaction with Dynegy. Blackstone was also given expenses and breakup fees worth over 11% of the shareholder consideration. In my opinion, all of these features of the proposed Dynegy/Blackstone transactions acted to discourage other potential bidders, reduce the value to be received by shareholders and strengthen my resolve to vote "no". I believe that if the transaction is voted down, then in a new, open process, many bids would emerge for Dynegy assets, and I may myself be a bidder -- something I would not have done in the restrictive context of the Dynegy/Blackstone transaction, with its unprecedented breakup fee.
- I am not concerned about supposed "liquidity" issues at Dynegy and continue to stand by my previously announced proposal to make financing available to Dynegy.
For the above reasons, I plan to vote against this deal and go back to the drawing board at Dynegy. I would then seek to press Dynegy to begin a new, open process to sell its assets, free of the elements that, in my opinion, have led to the undervalued proposal now before shareholders.
SOURCE Carl Icahn
More by this Source
Carl C. Icahn Issues Open Letter To Dell Stockholders
Sep 09, 2013, 09:34 ET
Browse our custom packages or build your own to meet your unique communications needs.
Learn about PR Newswire services
Request more information about PR Newswire products and services or call us at (888) 776-0942.