Exelon Corp. is set to become the largest utility operator in the U.S. if it succeeds in acquire NRG Energy Inc. The smaller company formally turned down Exelon's initial stock- swap offer earlier this week. In fact, late Tuesday, NRG Energy's management urged its shareholders to take no action on the proposal by the larger corporation. The Princeton, New Jersey based company was offered a premium of 10 percent over its closing price by Exelon on Tuesday. While NRG Energy shares fell 2 percent to $22.66 on Wednesday, Exelon shares declined by 2.5 percent to $50.66.
After NRG Energy repulsed their offer, Exelon has turned aggressive by taking their offer directly to NRG shareholders.
Exelon chairman and CEO John Rowe stated that NRG Energy rejected their proposal without any discussion as to the merits or structure of their proposal thus leaving them with no choice. The corporation is even pursuing a lawsuit against NRG and its directors alleging a breach of fiduciary duty for their failure to even consider the merger deal.
After NRG Energy repulsed their offer, Exelon has turned aggressive by taking their offer directly to NRG shareholders.
Exelon chairman and CEO John Rowe stated that NRG Energy rejected their proposal without any discussion as to the merits or structure of their proposal thus leaving them with no choice. The corporation is even pursuing a lawsuit against NRG and its directors alleging a breach of fiduciary duty for their failure to even consider the merger deal.
Leave a comment