May 18 (Reuters) - Power producer Vistra Energy Corp has proposed to take over debt-laden rival Dynegy Inc, the Wall Street Journal reported on Thursday, citing people familiar with the matter.

The Texas-based companies are in initial talks and a deal is still far from guaranteed, the Journal reported. http://on.wsj.com/2pR20AD

Dynegy emerged from Chapter 11 bankruptcy, in October 2012 after it had filed for protection from creditors a year earlier, burdened by costly power plant leases. http://reut.rs/2pR7hrE

Vistra Energy declined to comment on the bid while Dynegy was not immediately available for comment outside regular U.S. business hours. (Reporting by Bhanu Pratap in Bengaluru; Editing by Gopakumar Warrier)