SOURCE: NEAH

October 25, 2010 11:43 ET

Newco Energy Acquisition Holdings, LLC and Senior Energy Industry Executive Karl W. Miller Today Announced They Are Considering Options Regarding Dynegy, Inc.

NEW YORK, NY and WILMINGTON, NC--(Marketwire - October 25, 2010) -  Newco Energy Acquisition Holdings (NEAH), LLC and Senior Energy Industry Executive Karl W. Miller today announced they are considering options regarding Dynegy, Inc. proposed sale to an affiliate of The Blackstone Group L.P.

According to Mr. Miller:

  • The current market environment presents a unique and optimal opportunity to leverage senior executive energy backgrounds, skills, and experiences to acquire and invest in energy assets and companies that will generate strong returns. Dynegy, Inc. is in desperate need of a new Board of Directors, CEO and complimentary executive management team to grow the business, not liquidate.

  • Mr. Miller has followed Dynegy, Inc. operational and financial situation closely for several years and has seen no tangible evidence of any meaningful shareholder value creation, nor has management demonstrated the capability to execute meaningful energy transactions in any market conditions, current or otherwise, which would achieve shareholder value creation.

  • Dynegy, Inc filing with the SEC dated October 19, 2010 essentially advised shareholders that the Board of Directors and Management are not capable of growing the business, not able to create shareholder value and implies the very real risk of insolvency or bankruptcy if shareholders do not approve the proposed sale to affiliates of The Blackstone Group L.P. (http://www.sec.gov/Archives/edgar/data/1105055/
    000114036110041530/ex99_1.htm
    )

  • Following Seneca Capital filings with the SEC advising they would oppose the proposed sale of Dynegy to affiliates of The Blackstone Group L.P. (http://www.sec.gov/Archives/edgar/data/1337020/
    000119312510233771/dprec14a.htm
    ), in addition to objections by affiliates of Icahn Capital L.P. (http://www.sec.gov/Archives/edgar/data/921669/
    000092847510000062/dynsch13d100810.txt
    ), Mr. Miller has informally contacted certain institutional stockholders of Dynegy, Inc. and advised he concurs with Seneca and Icahn, and that Mr. Miller would consider guiding the installment of a new Board of Directors, CEO and executive management, subject to majority shareholder consent. Seneca Capital, Icahn and others owns a meaningful stake in Dynegy, Inc and have standing with other shareholders.

  • Mr. Miller has advised certain Dynegy shareholders that he would consider taking a Board position and potentially the CEO role under appropriate terms and conditions, and subject to the majority approval of Dynegy, Inc. shareholders. Accordingly, NEAH and Mr. Miller have decided to make their intentions known to all shareholders, such that they know there is a clear, credible and superior alternative which is to install a new Board of Directors, CEO and management team to grow Dynegy, Inc and create shareholder value.

  • NEAH and Mr. Miller do not currently have any intentions of filing any hostile actions against Dynegy, Inc., given the fact that the Dynegy Board of Directors has essentially capitulated in its SEC filing dated October 19, 2010, press announcement and subsequent correspondence with shareholders.

  • NEAH and Mr. Miller believe that a hostile Proxy contest is not necessary, not in the best interest of Dynegy shareholders, and that the Board of Directors has no standing with shareholders, following their SEC filing dated October 19, 2010 and subsequent filings and press releases.

  • Mr. Miller believes that Dynegy, Inc. shareholders have real capital at risk, irrespective of when they became shareholders. Mr. Miller also subscribes to the simple business philosophy that "when you are explaining, you are losing", and shareholders are seeking the installment of a new Board of Directors, CEO and complementary executive team who will execute of an earnings accretive business plan for Dynegy.

About Mr. Miller:

Mr. Miller is a globally recognized energy executive and institutional investor. Mr. Miller is widely viewed as an expert on distressed energy asset acquisitions and has acquired significant energy assets in the US and internationally at significant discounts over his career.

Mr. Miller is an energy industry expert with focus on trading, risk management, power plant development and overall management of energy companies in the oil, natural gas and renewable sectors.

Mr. Miller has built, restructured and managed energy businesses for major public energy companies on several continents, including PG&E Corporation, Electricite de France, El Paso Energy, Enron Corporation and JPMorgan Chase.

Mr. Miller holds an MBA in Finance from the Kenan-Flagler Business School at The University of North Carolina, Chapel Hill. Mr. Miller also holds a B.A. in Accounting from Catholic University located in Washington, DC.