The original deal was to exchanbge 0.485 shares of EXC for each share of NRG. (See this link for all my related posts about NRG.)

“The second rejection by NRG Energy’s board of directors came nearly two weeks after Exelon took its bid directly to NRG Energy shareholders by launching an exchange offer for all the company’s outstanding shares.”

and

“The board of directors is unanimous in its belief that the Exelon offer is inadequate, dilutive, significantly undervalues NRG and does not fully reflect the fundamental value of NRG’s assets, operations and strategic plan,” –NRG Chairman Howard Cosgrove…

NRG is recommending to the shareholders they do not sell.

Looks like posturing by NRG to me to get a higher offer. We’ll see if EXC sticks to it’s guns on the low-ball offer and tries for the hostile take over. If they make a higher offer, all the more better for my arb situation.

Notes:

Exelon’s tender offer expires Jan. 6

Sources:

Reuters/NY Times article

PR from EXC (includes tender offer info for shareholders)

Interesting read in dealbook blog on NYT (12/2/2008) about how the NRG deal so far has been a text book execution of a hostile take over attempt.