Exelon Extends Deadline in NRG Bid

Updated from 2:41 p.m.

Exelon will extend the deadline to Feb. 25 in its hostile bid for NRG Energy(NRG) after NRG shareholders tendered 45.6% of the outstanding shares.

NRG management urged its shareholders to reject the overture.

"The current Exelon offer is highly conditional and significantly undervalues NRG," the Princeton, N.J.-based firm said in the statement. "As always, we remain open to being a buyer or a seller at an appropriate value that compensates for the value and risk of the transaction."

"We are very pleased with the momentum our exchange offer is receiving among NRG shareholders," said John W. Rowe, Exelon chairman and CEO. "This strong tender at this early stage speaks powerfully to the merits of our proposed transaction, a combination we believe will create substantial value for NRG shareholders, both from the immediate premium they will receive and through their ongoing ownership of shares in a stronger combined company."

Exelon first unveiled its intention to buy NRG Energy in October when it offered NRG's board $6.2 billion in stock for the firm. When NRG's management scoffed at the offer and said it was too low for consideration, Exelon immediately circumvented NRG's headquarters and pitched the same offer to its shareholders directly.

NRG's stock price traveled comfortably above $40 per share for more than a year thanks to the recent commodity boom, and then nosedived to a 52-week low of $15 a share between July 1 and Oct. 9. However, shares of NRG had crawled back near $25 when Exelon made its initial unsolicited offer of $26 on Oct. 19.