Exelon is not taking hostile bid for NRG of the table

October 20, 2008 · By Faizan Filed Under Finance, Investing, News Tagged as: Exelon, Wall Street

Exelon Corp, might make a hostile bid for NRG Energy Inc if the company rejects its $6 billion takeover offer.

Exelong is the United States’ largest Nuclear power operator and it announced its bid for NRG on Sunday. The company offered a flat exchange ratio of 0.485 Exelon share for each NRG share, equivalent to about $25.27 a share at current prices.

Exelon’s Cheif executive, John Rowe, said while addressing investors in a conference call “We hope this turns out to be friendly rather than hostile, but we are committed to pursuing this offer and we shall do so,”.

“We did not do this lightly and we were very well advised about what it might take to get this done,”

The news of the takeover plan gave a 25% NRG Energy Inc’s shares, they were one of the big gainers on Wall Street when trading opened but still are values below what Exelon is offering. If the takeover is sucessful Exelon would effectively become the United States No. 1 power company.

Exelon has suspended a $1.5 billion share buy back plan due to worsening market conditions.

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