Dynegy (DYN) Deal with Icahn Rejected, CEO Stepping Down

Dynegy Inc. (NYSE:DYN) said its chairman and CEO is stepping down and its directors will be replaced as an agreement to be acquired by billionaire investor Carl Icahn was terminated.

The shake-up is at least a partial victory for Seneca Capital, one of Dynegy's biggest shareholders. Seneca had sought to replace Chairman Bruce Williamson and opposed Icahn's $665 million offer. That offer expired Friday afternoon, failing to get sufficient support from shareholders.

Williamson will resign as a director and chairman effective immediately. He will step down as CEO and president on March 11. At that time, David Biegler, an independent director, will take over those roles on an interim basis. Patricia Hammick, previously lead director, will serve as chairman.

In addition, Holli Nichols will step down as Dynegy's chief financial officer and executive vice president, also effective March 11. Charles C. Cook, executive vice president, commercial operations and market analytics, will serve as interim CFO.

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