Investor Carl Icahn is raising his stake in Dynegy and is offering a $2 billion loan to the electricity producer should its deal to be taken private by a buyout firm falls through.
Icahn said Friday in a regulatory filing he now owns 12.9 percent of the company and reiterated his objection to Dynegy's deal with Blackstone Group LP.
The deal depends on shareholder approval. A vote is set for Wednesday.
Icahn says he's offering the loan to the Houston company to ease concerns that it might not have enough liquidity if the deal doesn't go through.
Dynegy shares rose 8 cents to $4.71 in morning trading.