Takeover Drama Continues Between NRG Energy (NRG) And Exelon (XEL)

And another installment in the drama between NRG and Exelon…NRG Energy, struggling to defend itself from a hostile takeover by Exelon, has filed a lawsuit against Exelon. In the suit, NRG claims that Exelon’s offer to NRG shareholders was a "sham" intended to compel NRG to negotiate and that Peco Energy customers could see a dramatic increase in their electric bills in the event of a takeover.

Here are more details on the suit from Philadelphia Business Today:

The risk, according to the London Economics International L.L.C. paper being made available today, is that the credit ratings on Exelon and certain of its subsidiaries could be cut because of the heavy debt load required to complete the deal. That would force the Chicago company to pay more to borrow and possibly divert money from its regulated utilities, such as Peco.

Exelon immediately fired back via a spokesperson, saying  that the paper "appears to be yet another off-base allegation by NRG in a desperate attempt to thwart Exelon’s acquisition effort in the face of demonstrable support by NRG shareholders."

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