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

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 17,156.85 24.88 0.15%
Nasdaq 4,562.19 9.43 0.21%
S&P 500 2,001.57 2.59 0.13%
Treasuries 2.60 0.01 0.42%
Data as of 3:59am ET
Company Price Change % Change
Bank of America Corp... 16.77 0.06 0.36%
Apple Inc 101.58 0.72 0.71%
Yahoo! Inc 42.59 -0.12 -0.28%
Microsoft Corp 46.52 -0.24 -0.51%
Alcoa Inc 16.28 0.12 0.74%
Data as of Sep 17

Sections

Alibaba founder Jack Ma could earn as much as $867 million from his company's market debut. More

The Federal Reserve is probably not going to raise interest rates until the summer of 2015 at the earliest. More

Frederick Hutson launched Pigeon.ly in 2012 to help inmates communicate with their friends and family. He's on target for $1 million in sales this year. More

Occupy Wall Street offshoot Strike Debt says it has abolished nearly $4 million in private student loan debt for students who attended Everest College, part of Corinthian Colleges. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.