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.
- Blackstone Says It Won’t Raise Dynegy Bid (dealbook.nytimes.com)
- Dynegy Inc. Responds to Icahn Filing (eon.businesswire.com)
- Blackstone Reconfirms Its Affiliate’s $4.50 Per Share Cash Offer for Dynegy and Responds to Dissident Shareholder Filings (eon.businesswire.com)
- Proxy Adviser ISS Supports Blackstone-Dynegy Deal (blogs.wsj.com)
- Icahn offers Dynegy $2-billion credit line (theglobeandmail.com)
- Leading Proxy Advisory Firm ISS Recommends Dynegy Stockholders Vote “For” Proposed Merger with Blackstone (eon.businesswire.com)
- Numerous Independent Sell-Side Analysts Consistently Appear to Support the Blackstone Transaction as the Best Alternative Available for Dynegy Stockholders (eon.businesswire.com)