Takeover attempt remains highly conditional, requiring approval by the stockholders of both companies
– By Jack Bryar –
NRG Energy, Inc. has responded to the results of Exelon Corporation’s (NYSE: EXC) extended exchange offer and on the feedback it received from its stockholders through its investor outreach efforts.
“In this extraordinarily challenging market environment, we recognize that the majority of NRG stockholders, including those who tendered, and some who did not, wish to see the Exelon process continue. In that regard, NRG’s management and Board of Directors remain open to considering a transaction with Exelon at a fair exchange rate and on reasonable terms. Unfortunately the current Exelon offer, which remains unchanged, has neither.
“NRG will continue to engage in a market discovery process to determine the greatest value option available for NRG stockholders. As we have said before, NRG believes in industry consolidation and remains open to being a seller at an appropriate price that compensates NRG stockholders for the value and risks of a transaction. This includes considering a transaction with Exelon.
“NRG will also continue to focus on building upon its track record of delivering on its business objectives—driving strong free cash flow off the existing business while growing core areas at value through intrinsic and extrinsic opportunities. This was exhibited by the eSolar investment and MIBRAG sale announced earlier this week.
“Exelon’s unsolicited takeover attempt remains highly conditional, requiring approval by the stockholders of both companies, the arrangement of expensive debt financing and a favorable reaction from the credit rating agencies. In addition, Exelon must also meet the regulatory requirements of three federal agencies and five states, the timing and outcome of which remain uncertain.”