SAN DIEGO--(BUSINESS WIRE)--Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of state law by members of the Board of Directors of Dynegy Inc. ("Dynegy" or the "Company") (NYSE: DYN) in connection with their efforts to sell Dynegy to an affiliate of The Blackstone Group L.P. ("Blackstone") (NYSE: BX). If the transaction is completed, Dynegy shareholders will receive $4.50 in cash for each share of Dynegy stock they hold. The transaction is expected to close by the end of 2010.
Robbins Umeda LLP's investigation concerns whether the Board of Directors of Dynegy undertook a fair process to obtain fair consideration for all shareholders of Dynegy. Notably, a little over one month ago, Dynegy's stock traded above the buyout price and even traded as high as $5.35 on May 28, 2010. Earlier this year, the Company's stock traded at over $9.00 per share, more that twice what Blackstone's affiliate is offering. Additionally, at least one analyst has set a price target for Dynegy of $7.50 per share, $3.00 higher than the value of Blackstone's affiliate's offer.
If you are a shareholder of Dynegy, plan to continue to hold your shares, and would like more information about your rights as a shareholder, please contact attorney Gregory E. Del Gaizo at 800-350-6003 or by e-mail at firstname.lastname@example.org.
Robbins Umeda LLP is a California-based law firm with significant experience representing investors in merger-related shareholder class actions, shareholder derivative actions, and securities fraud class actions. For more information about the firm, please go to http://www.robbinsumeda.com.