Dynegy (NYSE:DYN) Approves Icahn's Bid

The 10 percent premium offered for Dynegy (NYSE:DYN) by Carl Icahn over Blackstone's (NYSE:BX) bid was enough to push Dynegy to accept the offer.

Icahn upped the bid for Dynegy from the $5 a share Blackstone offered to $5.50.

The values Dynegy as about $665 million, which would be an all-cash deal.

A subsidiary of Icahn Enterprises (NYSE:IEP) will make the tender offer on December 22.

If any better offers are made for Dynegy, the company will consider them through January 24, 2011.

Assuming no other offers, the deal is expected to close sometime in the first quarter of 2011.