Dynegy Stakeholder Seneca Capital Rejects Carl Icahn’s Buyout Offer
| December 20th, 2010 | ||
| Following the shareholder rejection of Blackstone Group’s offer for Dynegy Inc, Seneca Capital has recently opposed Carl Icahn’s Icahn Enterprises $5.50 per share offer to privatize the firm. With 9.3% and 9.9% of Dynegy’s voting stakes, Seneca Capital and Icahn Enterprises represent the energy firm’s largest stakeholders. Dynegy now faces accusations that its managements inappropriately attempted to sell the shares at a discounted rate to maximize profits. According to the Wall Street Journal, Seneca believes that Dynegy’s management and board “pursued this panic-driven buyout” in order to preserve severance payments. The hedge fund management firm also believes that Icahn’s offer understates what Seneca Capital deems to be a $6 to $7 share value. In response to these statements, Dynegy restated its interest in Icahn Enterprises’ offer and openness to review additional bids for the company until January 24th. | ||
For Detailed Investor Profiles on these Investors, click below: |
Icahn Associates (Carl Icahn) |
Seneca Capital |
Related People: Alexander J. Denner;
Related Entities: PAGS Investing LLC ;
Related Article Tags: Shareholder Activists, Corporate Raiders and Proxy Battles; Investment Management and Hedge Fund Firm Mergers, Acquisitions, Spin-offs and Transactions
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