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NRG rejects $6 billion Exelon bid as ‘risky’

NRG rejects $6 billion Exelon bid as ‘risky’

Power generation company NRG Energy has rejected a $6.08 billion buyout offer from Exelon.

On Oct. 19, Exelon, also a power generator, made an unsolicited offer to buy NRG in an all-stock transaction with a fixed exchange ratio of 0.485 an Exelon share for each NRG share.

The offer came on the heels of a depressed stock market, causing NRG to conclude in a news release that the offer “significantly undervalues” the company.

NRG’s board unanimously rejected the deal, describing it as “highly conditional” because Exelon has yet to line up committed financing and its credit rating has been downgraded.

Stories of interest:

Exelon Corp. offers $6.2 billion to buy NRG Energy Inc

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Calpine rejects NRG proposal