Exelon Raises Hostile Takeover Bid For NRG

July 2, 2009

(ChattahBox) — Exelon Corp., the nation’s largest electric and gas utility, raised its hostile takeover bid for NRG Energy Inc. 12 percent to $7.45 billion, in its bid to create the largest US power generator by output. The revised proposal comes after a drop in its share price basically canceled out the original premium it was offering.  The new offer supposedly motivated by Exelon discovering it has identified another $1.5 billion in synergies, will swap 0.545 share of Exelon for each NRG share. The deal is now valued at more than $7.4 billion.

New Jersey-based NRG, the second-biggest power producer in Texas, has already rejected an offer of 0.485 Exelon share for each share. After NRG’s board rejected the original bid, Exelon took its offer directly to NRG shareholders and has last month tried to place directors on the board. Chicago-based Exelon said this new offer is “its best and final offer:”  “We listened to NRG investors and balanced their views with the best interests of Exelon shareholders,” said Exelon Chairman and Chief Executive John Rowe. The offer is also the company’s last one, Mr. Rowe added. “NRG’s board of directors will carefully review Exelon’s revised proposal with its advisors and determine the appropriate response promptly,” said NRG in a statement.


Got something to say? **Please Note** - Comments may be edited for clarity or obscenity, and all comments are published at the discretion of ChattahBox.com - Comments are the opinions of the individuals leaving them, and not of ChattahBox.com or its partners. - Please do not spam or submit comments that use copyright materials, hearsay or are based on reports where the supposed fact or quote is not a matter of public knowledge are also not permitted.