NRG Energy investor asks board to consider effect of Exelon's offer on all shareholders

By Lisa Kerner

Charlotte, N.C., Feb. 3 - NRG Energy, Inc. shareholder Solus Alternative Asset Management LP said it agrees with the board's view that Exelon Corp.'s unsolicited exchange offer for NRG is inadequate.

However, Solus, noting that a "significant number" of NRG stockholders also have "substantial holdings of Exelon," urged NRG's board to evaluate the exchange offer on its merits and act in the best interests of all NRG stockholders.

The investor made its comments in a Jan. 29 letter to NRG's board that was included in a schedule 13D filed with the Securities and Exchange Commission.

"To the extent that NRG holders who have tendered into the current offer have more invested in Exelon, their decision to tender may well represent a judgment that the offer is favorable to Exelon rather than NRG," Solus said in the letter.

Exelon, a Chicago-based utility services holding company, is offering to exchange 0.485 shares of its common stock for each NRG share. The offer was extended to Feb. 25 from Jan. 6, it was previously reported.

As of Jan. 7, 45.6% of NRG shares had been tendered, according to Exelon.

Exelon recently proposed a slate of nine independent nominees for election to NRG's board at its 2009 shareholders meeting and asked investors to consider a proposal to increase the number of directors to 19 from 12.

NRG is a Princeton, N.J.-based power company.

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