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DealZone

Behind the deals and deal-makers

17:12 November 18th, 2008

Hostile, even in agreement

Posted by: Michael Erman
Tags: DealZone

Relations are unsurprisingly icy between Exelon and NRG Energy. After all, Exelon has launched a hostile bid to buy independent power company NRG and plans an attempt to add several members to the company’s board next year.

But one could be forgiven for not immediately picking up on the fact that, in a letter sent yesterday, NRG had agreed with Exelon’s interpretation on whether it could it could try to expand NRG’s board and fill the newly created positions.

“I know of nothing requiring NRG to provide its interpretation of its Charter in response to an inquiry of this type,” wrote NRG Deputy General Counsel Tanuja Dehne.

“It seems plain that your letter constitutes an effort to manufacture an issue for litigation. Rather than wasting time and resources on manufactured issues, NRG prefers to maintain its focus on maximizing shareholder value.”

Nevertheless, Dehne did provide Exelon with that interpretation, writing that NRG believes its charter does give shareholders the right to expand the board and elect new board members.

Whether the Exelon hand-picked directors would be on speaking terms with their NRG management colleagues is another question entirely.

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