Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers N > Headlines for NRG Energy, Inc. > News item |
NRG Energy rejects Exelon's 'opportunistically timed' offer
By Lisa Kerner
Charlotte, N.C., Nov. 10 - NRG Energy, Inc. said its board of directors unanimously rejected an Oct. 19 unsolicited offer from Exelon Corp.
The board reviewed Exelon's proposal with its advisers and determined that it is not in the best interests of NRG shareholders.
In the proposed offer, each NRG share would be exchanged for 0.485 Exelon shares for a value of about $26.43 per share, it was previously reported.
According to an NRG news release, the board believes Exelon's "opportunistically timed proposal grossly undervalues NRG on both an absolute basis and relative to Exelon's share value."
NRG, a Princeton, N.J.-based power company, also noted that Exelon does not have committed financing and the company's credit rating was downgraded a few days after it made the offer.
Exelon, a Chicago-based electric company, said the financing plan for its $6.2 billion unsolicited offer for NRG would require only $4 billion or so of refinancing and that the needed financing commitments are "well underway," according to an earlier 425 filing with the Securities and Exchange Commission.
In a letter to Exelon, NRG said it believes "the substantial decline in NRG's stock price is an unwarranted aberration" that overlooks the company's growth potential, stability, liquidity and cash flow generation.
It was previously reported that Exelon said NRG's failure to respond more promptly to its offer was creating uncertainty for NRG shareholders.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.