Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

An Enron-era name acquired by Blackstone

dynergy_shares_stock_chart.png By Annalyn Censky, staff reporter


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.

A former Dynegy executive, Jamie Olis, served 5 years in prison for a bookkeeping scandal involving the company. He was released a year ago, according to the Federal Bureau of Prisons. To top of page

Index Last Change % Change
Dow 18,473.75 -19.31 -0.10%
Nasdaq 5,110.05 12.42 0.24%
S&P 500 2,169.18 0.70 0.03%
Treasuries 1.56 -0.01 -0.51%
Data as of 1:48am ET
Company Price Change % Change
Freeport-McMoRan Inc... 12.68 0.30 2.42%
Bank of America Corp... 14.53 0.16 1.11%
Apple Inc 96.67 -0.67 -0.69%
Gilead Sciences Inc 81.05 -7.50 -8.47%
Chesapeake Energy Co... 5.35 0.21 4.09%
Data as of Jul 26
Sponsors

Sections

HSBC banker arrested at JFK airport as he prepared to leave the country. He and former trader face federal charges they manipulated currency trades. More

Bernie Sanders takes credit for forcing for forcing Hillary Clinton and the entire Democratic Party to get a lot tougher on Wall Street. But how likely is that to happen? More

This is where Tesla plans to build enough lithium ion batteries to catapult Tesla's electric vehicles into the mainstream. More

Only 3% of employers offer so-called "vacation stipends" that help pay for their employees' vacations. But those that do make taking time off a must. More