HOUSTON (

TheStreet

) --

Dynegy

(DYN)

agreed to be acquired by

Icahn Enterprises LP

(IEP) - Get Report

for $5.50 a share in cash, or about $665 million.

Shares of Dynegy, which has about $3.95 billion of outstanding debt, closed Tuesday at $5.45.

Last month, a

bid by Blackstone (BX) - Get Report for Dynegy at $5 a share

fell apart.

Under the terms of the agreement with Icahn, Dynegy will continue to solicit superior proposals until Jan. 24, 2011.

-- Written by Joseph Woelfel

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Joseph Woelfel

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