Billionaire investor Carl Icahn on Wednesday said he signed an agreement with power company Dynegy Inc
Dynegy's shareholders recently rejected a $665 million buyout deal floated by Icahn. That $5.50-a-share bid came under fire from hedge fund Seneca Inc, Dynegy's second-largest shareholder, which believes the company has more value.
According to a filing with the Securities and Exchange Commission, Icahn and Dynegy agreed to a waiver of section 203 of Delaware's corporate law, which would otherwise prevent Icahn from voting his shares in favor of any new deal he puts together for Dynegy for a three year period.
Icahn has suggested he is willing to provide the company with debt or equity financing.
Dynegy shares fell 3 percent on Wednesday as investors shrugged off a warning that the power company could seek bankruptcy protection if it is unable to amend or replace its existing loan facility.
(Reporting by Michael Erman; Editing by Bernard Orr)