Exelon (EXC) Advises Only 12% Of NRG (NRG) Shares Tendered in Hostile Takeover Bid

Exelon just announced that support for its $6.2 billion bid to takeover NRG Energy appears to have waned among NRG shareholders. Exelon still wants to take over the company, but in a letter to NRG shareholders, it advised that only about 12% of NRG’s outstanding shares had been tendered, a big drop from February’s statistic of 51%. The two companies are counting down to a crucial NRG stockholder’s meeting on July 21, when shareholders will vote on Exelon’s proposal to expand NRG’s board with Exelon-backed candidates.

According to Reuters, Exelon is neither surprised nor alarmed. William Von Hoene, Exelon’s general counsel, is quoted in the article, saying "Investors typically withdraw tendered shares between expiration dates, and do not re-tender until very close to the next scheduled expiration date."

However, NRG says the drop in support is due to the drop in the premium that Exelon is offering for its shares, only 3% as opposed to the 37% premium the offer was worth when it was originally made in October.

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