02 July 2009-- Exelon Corp. sweetened its takeover bid for rival power generator NRG Energy Inc. to $8 billion in stock, saying they saved more money along with NRG's recent deal for Reliant Energy's Texas retail business.
NRG Chairman and CEO John Rowe said that the new bid is Exelon's "best and final offer."
The previous offer has a current value of about $7 billion, but NRG rejected it, saying it undervalued the company.
Exelon said it increased the bid because it found an additional $1.5 billion in potential savings from the tie-up, and because of NRG's acquisition of Reliant Energy's retail business in May.
Last month, Exelon said it would to lay off 500 employees and take a $40 million severance in the second quarter as part of a massive cost-cutting program. Those cuts are expected to save Exelon about $350 million.
If NRG combines with Chicago-based Exelon, the new company would be the largest U.S. power generator. Exelon is the nation's largest nuclear power company.