Dynegy Inc. said it plans to again seek potential alternative buyout proposals and "review carefully " its standalone restructuring options if shareholders don't approve the proposed $604 million takeover by Blackstone Group LP later Tuesday.Bruce Williamson, chairman and chief executive of the power producer, acknowledged in a statement that the plan is likely to be rejected.
The vote was adjourned from Wednesday, as one day earlier the private-equity firm raised its offer 11% in an effort to gain greater support for the bid.Dynegy's two largest shareholders, Carl Icahn and hedge-fund operator Seneca Capital, control nearly one-quarter of the power producer's voting stake and have been against the buyout, saying the price is too low.
On Tuesday, Dynegy said that if the buyout vote fails and the review process begins, it will add a board member in consultation with Seneca that will be part of the panel overseeing the review and there are currently six board members, five of whom are independent.Among others, Seneca and Mr. Icahn will be invited to make proposals on Dynegy's future course. To prevent them from potentially launching an unsolicited takeover attempt of their own, the company has been enacted a so-called poison-pill plan that would kick in if any entity acquires or proposes to buy at least 10% of Dynegy's stock
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