Uncategorized

NRG rejects bid from Mirant

31 May 2006 — Mirant Corp. on Tuesday said it made an unsolicited offer to buy NRG Energy Inc. for $8 billion to create the largest U.S. independent power producer, but was flatly rejected by NRG.

NRG confirmed that it has received an unsolicited proposal from Mirant Corp. regarding a potential combination in letters dated May 10 and 30, 2006.

According to a press release, NRG’s Board of Directors reviewed the Mirant proposal and deemed it not in the best interests of NRG shareholders. NRG informed shareholders that they do not need to take any action at this time.

Shares of NRG jumped today but fell far short of the takeover offer from rival Mirant Corp., as investors viewed the deal with some skepticism, Reuters reported.

Mirant, which emerged from bankruptcy earlier this year, said it decided to go public with the offer because it believes the proposal still creates significant value for both companies. NRG snubbed the offer last week without entering into any discussions, Mirant said.

Mirant said it is offering to buy NRG for about $57.16 per share in cash and stock, valuing the company at a 33 percent premium to its Tuesday closing price.
Mirant has received a financing commitment from JPMorgan of approximately $11.5 billion for the transaction, the company said in a statement.