Exelon won't rule out hostile bid for NRG
Exelon Corp could make a hostile bid for NRG Energy Inc if the independent power producer rebuffs its unsolicited $6 billion takeover offer, Exelon's chief executive said on Monday.
Exelon, the largest nuclear power operator in the United States, unveiled its bid for NRG late on Sunday night. It offered to pay a fixed exchange ratio of 0.485 Exelon share for each NRG share, equal to about $25.27 a share at current prices, reported Reuters.
"We hope this turns out to be friendly rather than hostile, but we are committed to pursuing this offer and we shall do so," Exelon Chief Executive John Rowe said in a conference call with investors.
"We did not do this lightly and we were very well advised about what it might take to get this done," Rowe said.
Shares of NRG Energy Inc (NRG.N: Quote, Profile, Research, Stock Buzz) jumped 25 percent on Monday after Exelon Corp (EXC.N: Quote, Profile, Research, Stock Buzz) made an unsolicited offer to buy the independent power producer.
NRG Energy shares were one of the top gainers on the New York Stock Exchange, but were still trading below what they would be worth in the Exelon deal. They jumped $4.05 to $23.38, while Exelon shares slipped 4.4 percent, or $2.40, to $52.10, both on the NYSE.
NRG has said its board will review the offer and make a response "in due course."
With the acquisition of NRG Energy, Exelon would expand its unregulated energy business. The combined company would be the No. 1 U.S. power company, with generating capacity of around 47,000 megawatts, enough electricity to serve nearly 45 million homes, according to Exelon.