Privateequity firm Riverstone HoldingsLLC could be nearing a deal for Talen Energy Corp., Bloomberg reported May 6, citingunnamed sources.
Thesources said another bidder could emerge, or Talen could choose to continueoperating as a public company, according to the report.
TalenEnergy was formedthrough the merger of PPL Corp.'sPPL Energy Supply and a portfolio of assets owned by Riverstone. Talen Energy'sshares saw a lackluster debutin June 2015 when the company began regular trading as an independent powerproducer.
TalenEnergy President and CEO Paul Farr said in November 2015 that the company wouldconsider going private for the rightoffer and evaluate opportunities that "drove significantshareholder value creation beyond what was represented in the daily price."Farr, in December 2015, saidit is good corporate governance to have a "proactive strategy or a wellunderstood playbook to deal with that 'what-if' scenario of when a call gets made,a letter gets sent."
TalenEnergy's shares closed up 5.99% at $12.38 on Friday, May 6, with a marketcapitalization of $1.59 billion on May 6, up from $11.68 on May 5.
Riverstonein April announced plans to partnerwith Extol Energy LLC to invest in the conventional power generation sector.Extol is led by the management team that facilitated the merger of Riverstone'spower generation business into Talen.