Deals
Dynegy Surges After $6.25 Billion Bet on Power Prices
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Dynegy Inc. surged the most in more than 17 months after it agreed to buy $6.25 billion of power plants in a bet that electricity prices in the U.S. Northeast and New England will rise.
In two transactions announced today, the Houston-based company said it will almost double its generating capacity by paying $2.8 billion in cash for 11 power plants and a retail sales business owned by Duke Energy Corp. as well as $3.45 billion in cash and stock for units owned by private-equity firm Energy Capital Partners. Dynegy, which has a market value of $3.3 billion, will issue about $5 billion in debt and $1.2 billion in stock to fund the acquisitions.