Exelon (EXC) Makes Bid To Buy NRG Energy (NRG)

Exelon, a power company with the nation’s largest fleet of nuclear reactors, made an all-stock bid to NRG Energy late Sunday, according to CNN Money. The deal would widen Exelon’s geographic reach, and also help improve NRG’s credit rating. The smaller company has about 8 million in debt. Here are some more details about the bid, from CNN Money

Chicago-based Exelon said in a press release that it had offered 0.485 of an Exelon share for each NRG share, which is worth about $26.43 for each NRG common share, based on Exelon’s closing share price Friday. This represents a 37% premium to the NRG’s Friday closing price.

Although the bid would improve NRG’s credit and help Exelon expand and diversify its operations, it would also negatively impact Exelon’s credit ratings. The company sees that disadvantage as being outweighed by other advantages, including the creation of an energy company with the second-lowest carbon footprint in the industry.

NRG has not advised whether it will accept Exelon’s offer or not. It did release a short statement:

"NRG’s Board of Directors will review Exelon’s proposal with their advisors and determine the appropriate response in due course," it said in a statement. NRG stockholders are advised to take no action at this time, the statement said.

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