LS Power acquired its stake in Dynegy in 2006 when Dynegy spent $4.1 billion to buy LS Power's generating capacity.

LS Power was about a 3 billion dollar mistake. You sold DYN midstreams that always made a profit for a pig in a poke and looks like you got the poke. LS Power bought all assets back and then some for a billion and DYN got all the debt. Now the 95 million shares that LS Power owns they can use to manipulate DYN'S stock. If stock goes up they can short it to death knowing they have the shares to back it up and this drive the shares back down. Plus they have 3 seats on the board so they are in the know at what goes on. Just my take but what do I know.