LS Power Strikes $1.7 Billion Deal

LS Power Equity Partners has entered into an agreement to acquire nine power plants from Dynegy for $1.7 billion. The deal is structured so that LS Power will pay $1 billion in cash, returning 245 million shares of Dynegy stock valued at $472.8 million, and assume $235 million of debt. LS Power originally acquired its stake in Dynegy in 2006 when the two formed a joint venture to create a company with over 20,000 megawatts of combined generating capacity.