NRG Energy, Inc. (NYSE:NRG) responded to yesterday’s announcement by hostile suitor Exelon Corporation (NYSE:EXC) that Exelon had filed for Hart-Scott-Rodino approval of its proposed merger with NRG. The response is nothing more than a big whine.
NRG says there is no transaction to approve, and that the filing is an"unnecessary distraction for regulators" and that "processing thefiling would result in an inefficient use of government resources." NRGcould be right, but presumably the Department of Justice, the FederalTrade Commission, and the Federal Energy Regulatory Commission knowwhat they’re supposed to do and when they’re supposed to do it. Thefederal agencies probably don’t need NRG to give them a lecture on howto do their jobs.
NRG’s share price hit an intra-day peak of $22.55 at about 1 p.m.yesterday. The company’s tepid response to Exelon was issued at about 3p.m. NRG shares closed at $21.12. This is probably not the response thecompany hoped for, but it’s certainly what they deserved.
December 19, 2008