Description: The Blackstone Group, the private equity giant, agreed on Friday to buy Dynegy, the Houston power company that once sought to buy Enron, for $4.7 billion including debt, in the largest leveraged buyout so far this year.
Questions for discussion:
- Is this a good deal?
- Is the risk justified?
- What is the basic financial calculation upon which this deal is based?
- Do you agree with this line of reasoning?