Dynegy recessed its special shareholders’ meeting on Wednesday until November 23, saying it wants to give shareholders more time to consider Blackstone’s new offer to acquire the power producer.
Late Tuesday, the private equity firm raised the price it is willing to pay to buy Dynegy to $5 per share from $4.50 per share. Shareholders were scheduled to vote on the offer at the meeting Wednesday morning.
The new offer is opposed by dissident shareholders Seneca Capital and Icahn Capital Management.
In a statement, Dynegy called the new offer “a very important development” and asserted that Dynegy stockholders should have an opportunity to consider before there is a vote on both the merger proposal and, if necessary, the proposal to adjourn the special meeting to solicit additional votes for the merger proposal.
Also on Wednesday, Barclays analyst Gregg Orrill recommended investors approve the deal. “We still believe a stated Blackstone offer is attractive for the up-front cash value and see significant risk to voting it down,” Orrill wrote in a note to clients.
He said he sees upside in asset values to $6 to $7 per share. But, he added it could take a cyclical turnaround to achieve which could be several years away.
On Tuesday, Icahn fired off a press release calling the $5 offer inadequate. He again pointed to JP Morgan’s report on Monday that stated that it is “introducing a December 2011 price target of $7, up from our prior December price target of $5.00.”
