(Dynegy, Allis-Chalmers story, updated for RRI Energy, Mirant gains)
NEW YORK (TheStreet) -- Two big energy market deals on Friday morning caused huge spikes in shares of Dynegy (DYN) and Allis-Chalmers (ALY). Both companies are being taken out -- by way of private equity purchase, in the case of Dynegy, and an acquisition, in the case of Allis Chalmers.
Dynegy, which sells electricity, agreed to be taken private by the Blackstone Group (BX) for $4.7 billion, including debt, one of the biggest leverage buyout deals of 2010.
The $4.50 per share in cash that Blackstone is paying for Dynegy is a 62% premium to Thursday's closing price, causing the massive spike in shares of the electricity market company.The Dynegy-Blackstone deal was causing a spike in share of wholesale power sales companies. RRI Energy (RRI) and Mirant (MIR) had among the largest gains in the equity market on Friday morning, up between 7% and 8%. Both merchant energy companies had reached their average daily trading volume within an hour of the market open. Notably, both RRI Energy and Mirant had traded at 52-week low prices on Thursday. Wholesale power provider Calpine (CPN) was also up more than 6% on Friday morning. Concurrent with the privatization of Dynegy, Blackstone is selling four natural-gas plants to NRG Energy (NRG) for $1.36 billion. It's not a done deal yet. Dynegy has a 40-day period during which it can solicit potentially higher or better bids.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV