Risk-to-Price Commentary: Dynegy Inc. Aug 10
Standard & Poors, August 2010
Abstract
Dynegy Inc. shares shot up more than 60% on Friday after the company announced it would be acquired by an affiliate of the Blackstone Group LP in a transaction amounting to $4.7 billion, including the assumption of debt. The deal calls for each Dynegy shareholder to receive $4.50 in cash, a 62% premium to the closing price on Aug. 12, for each share of Dynegy they own. The merger, if approved, would close at the end of the year. However, it has a contingency--NRG Energy, in collaboration with Blackstone, agreed to buy four Dynegy-owned natural-gas-fired facilities, and that deal must reach a successful conclusion before the Dynegy deal can close. Dynegy has 40 days to entertain bids from other companies....
Companies mentioned in this report are:
- Alabama Power Co.
- Duke Energy Ohio Inc.
- Mississippi Power Co.
- Ohio Power Co.
- Piedmont Natural Gas Co. Inc.
- Ameren Missouri
- CILCORP Inc.
- RGS (AEGCO) Funding Corp.
- Dynegy Holdings LLC
- Elwood Energy LLC
- ITC Holdings Corp.
- Blackstone Holdings Finance Co. L.L.C.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
- Alabama Power Co.
- Duke Energy Ohio Inc.
- Mississippi Power Co.
- Ohio Power Co.
- Piedmont Natural Gas Co. Inc.
- Ameren Missouri
- CILCORP Inc.
- RGS (AEGCO) Funding Corp.
- Dynegy Holdings LLC
- Elwood Energy LLC
- ITC Holdings Corp.
- Blackstone Holdings Finance Co. L.L.C.
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