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Exelon sets out ‘final’ takeover bid for NRG Energy, parent of Reliant Energy
By Amarendra Bhushan for CEOWORLD Magazine Updated:July 3, 2009
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US electricity producer Exelon Energy increased its hostile bid for NRG Energy, parent of Reliant Energy by 12 per cent to about $7.5bn and called the move its “best and final offer”.
As part of the new offer, NRG would receive 0.545 Exelon shares for each share of NRG stock. The improved ratio is 12.4 percent higher than the initial offer which Exelon tabled in October.
NRG has repeatedly rejected Exelon’s earlier offer, which stood at 0.485 of an Exelon share for each NRG share.
US Nuclear power giant and utility operator, Exelon Energy, which has been trying since October to acquire its rival NRG Energy.
Exelon has said its ability to raise its offer comes via the $15bn or so in additional cost savings that would flow from the merger.
“This is our best and final offer , and we will use the time leading up to the NRG annual meeting to communicate the value of our new offer to NRG shareholders,” said John Rowe, Exelon’s chairman and chief executive.
A combination of the two energy majors could create the largest power company in the US, ahead of Atlanta-based Southern Co. and Columbus, Ohio-based American Electric Power, with a generation capacity of around 47,000 megawatts – enough to power nearly 45 million homes.
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