Exelon urges NRG shareholders to elect directors

CHICAGO - Exelon Corp. on Monday urged NRG Energy Inc. shareholders to elect nine new independent directors, in an attempt to bolster support for its effort to create the largest U.S. power generator by output.

The expanded NRG board would have 19 members.

Thursday, Exelon sweetened its hostile takeover bid for NRG Energy Inc. by 12 percent to $8 billion in stock, citing newly identified cost savings along with NRG's recent deal for Reliant Energy's Texas retail business.

Now Exelon is offering 0.545 shares of its stock for each NRG share. The old offer had been 0.485 shares.

The new offer represents value of more than $3 billion to NRG shareholders, Exelon said. Exelon said its shareholders would see additional value of $1 billion to $3 billion.

The bid was increased after Exelon said it found an additional $1.5 billion in potential savings from the tie-up, and because of NRG's acquisition of Reliant Energy's retail business in May for $287.5 million.

If NRG combines with Chicago-based Exelon, the new company would be the largest U.S. power generator, providing energy to about 45 million homes. Exelon is already the nation's largest nuclear power company. NRG's annual meeting is scheduled for July 21.

Shares of Exelon fell $1.20, or 2.4 percent, to $48.17 in morning trading. NRG shares dropped $1.16, or 4.7 percent, to $23.64.

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