Seneca Wants Two Dynegy Directors Out

By Houston Business Journal

Seneca Capital Investments LLC is now calling on Dynegy Inc. shareholders to remove two directors from its board.

New York City-based Seneca made binding proposals in a regulatory filing Tuesday with the U.S. Securities and Exchange Commission asking that Bruce Williamson, chairman, president and chief executive officer of Dynegy, and David Biegler, chairman and CEO of Southcross Energy LLC, be removed and replaced with two of the hedge fundâ¿¿s nominees, E. Hunter Harrison and Jeff Hunter.

Houston-based Dynegy (NYSE: DYN) received early approval from the Federal Trade Commission last week for New York activist investor Carl Icahnâ¿¿s $665 million buyout bid of the power provider. Seneca has opposed the buyout deal.

Seneca is the second-largest Dynegy shareholder after Icahn, with an approximate 12.1 percent stake in the company, according to the filing.

In addition, the hedge fund is also proposing that Dynegy revoke bylaws that prohibit takeovers that arenâ¿¿t approved by the board as of Nov. 22, the day before Dynegy shareholders voted down a previous buyout deal by an affiliate of The Blackstone Group LP.

Copyright 2011 American City Business Journals

http://www.bizjournals.com/houston/news/2011/01/04/seneca-wants-two-dynegy-directors-out.html?ana=thestreet

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