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Dynegy Proxy Shouting Match

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Dynegy (DYN) is facing a crucial vote on Nov 17, 2010 just a few days from now.They can accept what Blackstone Group (BX) has on the table or refuse. The refusal seems to be certain death. No other competing offers are on the table. No one was interested during the 40 day go shop period after the Blackstone offer was made public.

What is thoroughly confusing is the shouting match being conducted by the three major proxy voting recommendation services. Institutional Shareholder Services (ISS) recommends taking the deal. They point out no other offers and death spiral options if Blackstone walks away.

Glass Lewis & Company and Proxy Governance argue in favour refusing the deal. They claim the analysis in favour of Blackstone is flawed. In this case it would seem that the proxy research recommendation firms have not added value to the process. The arguments pro and con have not been much altered. The investor seems to be on his own.  Where are the lawsuits against the board for poor governance that lead to this discouraging state of affairs.

Disclosure: George Gutowski writes from a caveat emptor perspective. I hold no positions in stocks mentioned in this post.