NRG Energy CEO continues to oppose Exelon's exchange offer

By Lisa Kerner

Charlotte, N.C., Jan. 13 - NRG Energy, Inc. president and chief executive officer David Crane, in a letter to some NRG business partners, said Exelon Corp.'s unsolicited exchange offer undervalues NRG, is dilutive to cash flow, does not take into account NRG's market position and strategic direction and is risky to NRG stockholders.

Exelon is offering to exchange 0.485 shares of its common stock for each NRG share.

Exelon extended the offer to Feb. 25 from Jan. 6. As of Jan. 7, 45.6% of NRG shares had been tendered, according to Exelon.

Previously, Exelon said it expected to extend the offer "several times" past the Jan. 6 expiration date because it will take months to obtain all regulatory approvals necessary in the proposed acquisition of NRG.

Crane acknowledged shareholder support for a fair-value transaction but said Exelon has no strategy for a combined company and simply wants to reduce NRG's debt in order to achieve better credit ratings.

In the letter, Crane also outlined Exelon's actions to date regarding the offer and attempted to answer questions about the offer that may be posed by NRG's business partners.

NRG's board of directors rejected the Chicago-based electric company's offer twice before the company brought the offer directly to NRG shareholders.

It was previously reported that Exelon or its subsidiary, Exelon Xchange Corp., planned to propose expanding the Princeton, N.J.-based power company's 11-member board to up to 15 members.

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