Energy Market Deals: Dynegy, Allis-Chalmers

(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.

Allis-Chalmers Energy, an oil field services company, spiked by 68% on Friday morning after it agreed to be bought by Norway-listed Seawell in a deal valued at $890 million. The deal was announced late Thursday night.

The deal valued Allis-Chalmers shares at $4.25 in cash, or 1.15 Seawell common shares for each share of Allis-Chalmers.

The merger terms are predicated on a listing of Seawell on the Oslo or London Stock Exchange and an equity raise of at least $100 million.

-- Written by Eric Rosenbaum from New York.

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