Federal Energy Regulatory Commission (FERC) have approved Carl Icahn’s bid to acquire merchant power producer, Dynegy, The Wall Street Journal reports. Icahn Enterprises had offered to buy 50% of Dynegy’s shares for about $665 million.

Investors have until Feb. 14, 2011 to decide whether to support Icahn’s $5.50 a share offer or to side with the other bidder, Seneca Capital. Dynegy is being advised by Goldman Sachs and Greenhill & Company.

Click here for the story from The Wall Street Journal.

Click here for the additional coverage from Reuters.