Chicago-Based Exelon Corp. withdrew its $7.3 billion hostile bid for NRG Energy Corp. yesterday, Exelon announced.
Chicago-Based Exelon Corp. has withdrawn its $7.3 billion hostile bid for NRG Energy Corp. yesterday, Exelon announced.
New Jersey-based NRG owns a heating and a cooling plant in Harrisburg.
Exelon Corp. made its latest offer to NRG shareholders July 2. Exelon previously announced it would withdraw its offer if shareholders didn’t appoint members it favored to its board of directors, which would have cleared the way for the deal.
There was not enough shareholder interest in the deal yesterday during NRG’s annual shareholder meeting, and that is why Exelon withdrew its offer, Exelon spokeswoman Judy Rader said.
NRG executives had said that Exelon’s offer undervalued the company. NRG also rejected a $6.2 billion bid Exelon made for the company in October.
NRG Energy Center Harrisburg on North 10th Street pipes steam heat to businesses and major downtown Harrisburg buildings, including the Capitol Complex and Strawberry Square. NRG’s cooling plant on South Second Street cools the Harrisburg Hospital and other nearby buildings.
The Harrisburg Authority hopes to again sell steam to NRG for use at its heat plant. The steam is produced by the authority-owned incinerator plant, which is mired in more than $300 million of debt. A line connecting the incinerator to the heat plant broke in 2007 and the authority wants to work out an agreement with NRG to fix it and use steam sales to pay down debt.