NRG Says No; Exelon Says Please (NRG, EXC, JPM)

It took NRG Energy (NYSE:NRG) almost two weeks to figure out that shareholders should reject the exchange offer from Exelon Corporation (NYSE:EXC). That’s odd because NRG had already rejected the same offer before Exelon decided to go directly to shareholders.

In the continuing battle of press releases, Exelon  yesterday urged NRG shareholders again to tender theirshares by January 6, 2009. Exelon also announced that it had added JPMorgan (NYSE:JPM) to its team of advisers for the proposed acquisition.That ought to get those guys over at NRG quaking in its boots–JPMorgan can probably fire off a mean press release.

Exelon’s offer comes in at about $6 billion in stock, a premium ofnearly 35% to NRG’s share price on October 17th. Shares in NRG are up15% and shares in Exelon are down about 1% since Exelon first made itsoffer. NRG doesn’t have any alternatives lined up, and it’s unlikelythat it will find one. NRG’s board is just holding out for more, butstockholders may be satisfied with Exelon’s offer.

Look for more press releases between now and January 6th.

Paul Ausick
November 26, 2008