Dahlman Rose Reiterates Hold Rating on Dynegy (DYN)

Dhalman Rose & Co. is out with a research report this afternoon, where it reiterates its Hold rating on Dynegy Inc. DYN. The Dahlman analysts cited the recent news that Blackstone Group BX has bid $4.50 per share (all cash) for the company in a transaction that would total $4.7 billion including the assumption of debt. The Dahlman analysts noted that Blackstone's bid represents 8.8x Dynegy's 2012 consensus EBITDA and approximately $385/KW. They believe that this is a fair value “given the company's asset base and the generally cheaper valuations of peers in the IPP group.” The analyst expect the deal to close by the end of 2010.