Exelon ups NRG hostile bid; NRG shares slip

By Michael Erman and Matt Daily

NEW YORK (Reuters) - Exelon Corp (EXC.N) raised its hostile takeover bid for independent power producer NRG Energy Inc (NRG.N) by more than 12 percent to $7.45 billion on Thursday but failed to excite investors.

The new offer comes more than eight months after Exelon first announced its intention to buy NRG and create the nation's biggest electricity generator, with the largest fleet of nuclear power plants.

"This is our best and final offer, and we will use the time leading up to the NRG annual meeting on July 21 to communicate the value of our new offer to NRG shareholders," Exelon Chief Executive John Rowe said in a statement.

As part of its hostile bid, Exelon has nominated a slate of directors to stand for election at NRG's annual meeting.

NRG shares fell nearly 2.6 percent in morning trading. Meanwhile, Exelon was down 1.9 percent, cutting into the value of the bid.

Exelon is offering 0.545 of a share -- worth about $28.10 at Wednesday's close -- for each NRG share. That amounts to a premium of nearly 8 percent to NRG's closing stock price.

At Wednesday's close, Exelon's previous bid valued NRG shares at $25.01.

NRG, which has said Exelon's previous offer was too low, said it has not yet received a revised proposal from Exelon, but its board is reviewing the bid. It urged NRG shareholders to take no action at this time.