Exelon raises hostile takeover bid for NRG Energy to $7.45 billion

US Nuclear power giant and utility operator, Exelon Corporation, has raised its $6.2-billion hostile takeover bid for the second-largest power producer in Texas and  rival, NRG Energy, by 12 per cent to $7.45 billion in a bid to sway NRG Energy's shareholders ahead of the company's annual meeting on 21 July.

In the new offer, Exelon cited approximately $1.5 billion of additional newly-identified synergies as the primary reason for raising its offer.  It said that the offer also reflects the value of NRG's recent acquisition of the Reliant Energy retail in Texas.

 In October, Chicago-based Exelon Corporation made an unsolicited offer to acquire rival NRG Energy for $6.2 billion in an all-stock deal, to form the largest power utility in the US. (See: Exelon offers to acquire NRG Energy in $6.2-billion all-stock deal)

A combination of the two energy majors could create the largest power company in the US, ahead of Atlanta-based Southern Co. and Columbus, Ohio-based American Electric Power, with a generation capacity of around 47,000 megawatts - enough to power nearly 45 million homes.

Exelon owns and operates electric utilities in Illinois and Pennsylvania and power plants throughout the US, including the nation's largest fleet of nuclear plants. NRG owns more than 24,000 megawatts of generation.

In November, Princeton, New Jersey-based NRG Energy rejected the hostile takeover offer from Exelon saying that the offer significantly undervalued the company and the offer was "opportunistically timed" since the all-stock bid came after NRG lost half of its market value in two months. (See: NRG Energy rejects $6.2 billion unsolicited bid from Exelon Corp. as undervalued)