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

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By Douglas A. McIntyre Updated Published
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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

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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