WSJ : Vistra Energy In Buyout Talks With Dynegy

(RTTNews) - Vistra Energy Corp. has made a takeover approach to debt-laden rival Dynegy Inc. (DYN), the wall Street Journal reported citing people familiar with the matter.

The report said that the Texas power companies are in preliminary talks. It is far from guaranteed the talks will lead to a deal, but if they do, it would be sizable: Each company has a so-called enterprise value, including debt, of about $10 billion, according to S&P Capital IQ.

Dynegy itself soon ran into financial trouble, as investors fled energy-company stocks in the wake of Enron's accounting scandal. It recovered by selling assets and cutting costs. But the company filed for chapter 11 in 2012, hurt by sharp declines in power prices and a heavy debt load. The bankruptcy filing followed a takeover bid by private-equity firm Blackstone Group LP that fizzled amid opposition from Carl Icahn and other Dynegy shareholders. The company emerged from bankruptcy later in 2012 and has since done a number of debt-fueled acquisitions.