Dynegy Inc. (DYN) named current director Robert C. Flexon
president and chief executive Wednesday, the latest change at the
top of the power generator after a protracted fight for its
control.
The management change follows a shakeup on Dynegy's interim
board, which in March expanded by four seats. It appointed two
nominees from Carl Icahn, who owns a 15% stake in Dynegy, and it
added a single nominee backed by activist hedge fund Seneca
Capital, which has a 12% stake. The final added member was an
independent.
In February, after shareholders rejected Icahn's buyout bid for
the company, Dynegy's top two executives resigned and its board
agreed to step down in June.
Effective July 11, Flexon will replace E. Hunter Harrison, who
has served as interim chief since April. Harrison will return to
his role as an independent director after the transition and become
non-executive chairman of the board.
Dynegy faces a heavy debt load and an accelerating cash burn.
The company swung to a loss on sharply lower returns from hedging
efforts and slumping revenue in its latest first quarter.
Flexon, 52, has served as chief financial officer for gas
distributor UGI Corp. (UGI) He also led
engineering-and-construction firm Foster Wheeler AG (FWLT) in 2010.
Before Foster Wheeler, Flexon was finance chief for NRG Energy Inc.
(NRG) from February through November 2009.
Shares were recently up 4 cents to $4.99 after-hours Wednesday.
The stock is up 24% over the past 12 months.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909; Andrew.FitzGerald@dowjones.com