Mirant said late Tuesday that its proposal to offer NRG shareholders $57.50 in cash or 2.25 Mirant shares for each NRG share represents a premium of about 33% to NRG's Tuesday closing price of $43.01.
In a statement, Mirant said NRG's rejection was made without any discussions with Mirant. In an accompanying letter to NRG's board, Mirant said: "We were disappointed that you would reject so quickly on behalf of your shareholders, without any discussion with us, our acquisition proposal of May 10, 2006, which provides your shareholders a substantial premium to their share price and the opportunity to participate in the additional value creation we expect from the combined company."
Mirant said it has received a financing commitment of about $11.5 billion from JPMorgan, which, when combined with Mirant's available cash, would fund the acquisition, refinance NRG's senior credit facilities and fund the purchase of two grades of senior notes.
"We think that a combination of Mirant and NRG would create an enterprise with significant opportunities for expense and operational synergies and a national footprint that is without parallel," Mirant said in the letter.
Shares of Mirant closed down 32 cents, or 1.3%, to $25.25.