Exelon drops bid for NRG following proxy vote at NRG's annual meeting

By Lisa Kerner

Charlotte, N.C., July 21 - Exelon Corp. terminated its pending offer to acquire all of the outstanding shares of NRG Energy, Inc. common stock following NRG's annual meeting on Tuesday.

According to NRG, its shareholders re-elected all of its director nominees and rejected Exelon's proposal to expand NRG's board with its own slate of five director nominees.

Exelon nominated an additional four candidates to run in opposition to incumbent directors.

"NRG stockholders understood that this vote was all about value and they voted overwhelmingly to send a message that Exelon's current offer was unfair to NRG stockholders," NRG president and chief executive officer David Crane said in a company news release.

Exelon recently increased its offer to acquire the Princeton, N.J.-based power generation company to a fixed exchange ratio of 0.545 of a share of Exelon common stock, from 0.485 of a share, for each share of NRG common stock.

The exchange offer was to end Aug. 21.

"The NRG shareholders have spoken, and Exelon will move on," Exelon chairman and CEO John Rowe in a company news release.

Rowe said Exelon, a Chicago-based electric company, will focus on its stand-alone growth opportunities.

NRG's director nominees were John F. Chlebowski, Howard E. Cosgrove, William E. Hantke and Anne C. Schaumburg. The voting results are preliminary and will be certified by IVS Associates, Inc., said NRG.

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