CORRECTED-UPDATE 3-Riverstone to take Talen Energy private for $1.8 bln

Fri Jun 3, 2016 10:49am EDT
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(Corrects to "private" market from "public" market in analyst's quote in paragraph 8)

* Enterprise value of deal is about $5.2 bln

* Offer of $14/shr for 65 pct stake Riverstone does not own

* Offer represents a 17.3 pct premium to Talen's Thursday close

* Shares up about 16 pct in early morning trading

By Amrutha Gayathri

June 3 (Reuters) - Electricity producer Talen Energy Corp said private equity firm Riverstone Holdings LLC will buy the remaining stake it does not already own in the company for about $1.8 billion, amid a string of deals in the U.S. power industry.

Talen Energy's shares were up nearly 16 percent in early morning trading on Friday.

Falling demand in both open and regulated power markets due to increased energy efficiency and a weak economy has led to several deals as U.S. power producers and utilities look to cut costs.   Continued...