Exelon Takes Bid to NRG Shareholders

By Mark Williams

PHOENIX (AP) -- Exelon(EXC Quote) is taking its all-stock bid of around $6 billion for NRG Energy (NRG Quote) directly to shareholders after NRG executives rejected the bid as being too low.

Exelon said it will start the exchange offer Wednesday for all of NRG's shares.

"While we would have greatly preferred to enter into direct negotiations with NRG's board and management, their decision to reject our proposal, without any discussion with us as to the merits or structure of our proposal, has left us with no choice but to bring the offer directly to the NRG shareholders," John Rowe, Exelon's chairman and CEO, said in a statement.

The company said earlier Tuesday it had no intention of raising its offer.

"We think the offer is sweet as it is," Chris Crane, Exelon's president and chief operating officer, told analysts at the annual Edison Electric Institute meeting in Phoenix.

Chicago-based Exelon made the offer last month. The combined Exelon and NRG would create the nation's largest power company, big enough to power nearly 45 million homes with 47,000 megawatts, company officials said.

Princeton, N.J.-based NRG, which has ownership interests in 44 power generating facilities, said Exelon was trying to capitalize on NRG's weakened stock price that has been hurt by market turbulence.

It recommended that NRG shareholders take no action while the company's board reviews the proposed exchange offer.

Shares of NRG closed Tuesday at $23.05. Exelon shares finished at $52.49.