NRG Lectures the Feds (NRG, EXC)
December 19, 2008 by Douglas A. McIntyreNRG 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.
Paul Ausick
December 19, 2008
Sponsored: Want to Retire Early? Start Here
Want retirement to come a few years earlier than you’d planned? Orare you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.