Talen Energy's Stock Soars After Riverstone Buyout Deal

Talen Energy Corp.'s stock shot up 18% in premarket trade Friday, after the power generation company agreed to be acquired by private investment company Riverstone Holdings LLC, in a deal that would value Talen at about $1.8 billion. The deal includes Talen's $3.3 billion in unsecured debt. As part of the deal, Riverstone, which already owns 35% of Talen's stock, would pay $14 for each Talen share it didn't already own. That represents a 17% premium to Thursday's closing price of $11.94. Based on 128.53 shares outstanding, according to FactSet, the per-share bid would give Talen a market value of $1.799 billion. Talen will have a "go shop" period of 40 days, in which Talen may actively solicit alternative bids. If Talen accepts a superior bid, Talen would pay Riverstone $25 million. Talen's stock has soared 92% year to date through Thursday, while the S&P 500 has gained 3%.