NEW YORK (CNNMoney.com) -- Shares of Dynegy Inc. - a power generating company that played a role in the Enron scandal - surged more than 60% Friday after the company agreed to be acquired by investment firm Blackstone Group for $4.7 billion, including its existing debt.
Under the deal with Blackstone Group (BX), Dynegy stockholders will receive $4.50 in cash for each share of Dynegy common stock they own -- a 62% premium to the closing share price of $2.78 on Thursday, the company said.
Shares of Houston-based Dynegy (DYN) soared about 61% to $4.47 after the opening bell.
The deal also includes an agreement between Blackstone and power generator NRG Energy (NRG, Fortune 500), under which NRG will acquire four of Dynegy's natural gas-fueled plants in Maine and California for about $1.36 billion.
Dynegy, whose shares have fallen 89% over the past three years, has 40 days to shop around for competing offers.
In late 2001, Dynegy considered a $9 billion merger with Enron Corp. to bailout the disgraced energy giant. But Dynegy pulled the plug on the deal after having difficulty getting a true appraisal of Enron's worth, and soon after Enron went bankrupt.
The Dow is down 300 points over the past two days, leaving the index on track for its worst week since early February. Blame fumbled earnings reports from the likes of Apple and Google as well as concerns about the Bank of Japan. More
WeWork co-founder Miguel McKelvey talks to CNNMoney's Laurie Segall about his design process for WeWork buildings. More
In 1998, Ntsiki Biyela won a scholarship to study wine making. Now she's about to launch her own brand. More