NRG Energy has rejected a second, larger takeover bid from Exelon valued at $6.9 billion, saying the bid does not adequately reflect the value of the company. Exelon, the largest U.S. utility owner by market value, took its offer directly to NRG shareholders after the power producer’s board rejected the proposal and refused to negotiate.
In a June 17 proxy solicitation, reports Bloomberg, Exelon urged NRG owners to expand the company’s board and elect its nine independent nominees who, Exelon claims, have an unbiased perspective to the bid, unlike the “entrenched” board. The NRG shareholders’ meeting is scheduled for July 21.
Exelon increased its bid from .485 to .545 per Exelon share in exchange for 1 NRG share.
NRG, the second-largest electricity producer in Texas, said Exelon’s bid does not reflect the full value the company has created. Due in part to its acquisition of RRI Energy, NRG today raised its 2009 forecast for adjusted earnings before interest, taxes, depreciation and amortization by $325 million, to $2.5 billion. A stock-buyback plan was expanded 52 percent to $500 million.