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Exelon won't up bid after NRG rejection

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  • Originally published July 9, 2009 at 4:57 p.m., updated July 9, 2009 at 10:55 p.m.

Exelon Nuclear stood firm on Thursday in its hostile bid to take over NRG, which a day before rejected a sweetened deal.

"We are not chasing," John Rowe, Exelon's chief executive officer, said Thursday in an interview on CNBC. "This is our bid."

Exelon increased its bid last week to $6.97 billion, but NRG's board of directors again rejected the offer.

Exelon offered late last year to buy NRG, the state's second-largest energy producer and owner of Reliant Energy and the South Texas Project. The company declined, saying the bid undervalues its worth.

The rejection set forth Exelon's hostile takeover attempt. Now, Exelon urges shareholders to approve its proposal to expand NRG's board of directors and elect its nine hand-picked nominees.

Shareholders vote during their annual meeting on July 21.

If Exelon takes NRG over, the move may push back its decision to build in Victoria County. Already, the company moved the decision's deadline to at least 2012 - back from its original 2010 target date.


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