Chevron Corp. will sell its 11.5 percent stake in Houston power plant operator Dynegy
Chevron Corp. will sell its 11.5 percent stake in Houston power plant operator Dynegy, citing the changing relationship between the two companies and Chevron's need to focus on its main businesses.
Chevron said it will sell its 96.9 million shares of Dynegy on the open market through Goldman Sachs by week's end.
Chevron first acquired a stake in Dynegy in 1996 when it transferred most of its midstream natural gas business to the company. As part of that deal, Dynegy also began marketing Chevron's natural gas production.
Chevron spokesman Don Campbell said with that marketing relationship gone, there was little need to maintain the close ties.
Under terms of the merger, LS Power Group received 340 million shares of Dynegy's Class B stock, which represents about 40 percent of Dynegy's outstanding equity.