NRG and Exelon vent their opinions in rival messages to shareholders in advance of annual meeting.The test of wills between NRG Energy Inc. (NYSE: NRG), in Princeton, and Chicago-based Exelon Corp. (NYSE: EXC) is stirring up shares before a crucial vote goes to the stockholders. Leaders for the two companies continue to disagree on a proposal offer for NRG.
Goldman Sachs issued a report today that included an upgrade for NRG from ÂneutralÂ to Âbuy,Â with a 12-month price target of $28. The report also reiterated a ÂbuyÂ rating for Exelon.
NRG chief executive David Crane issued a letter Wednesday urging shareholders to vote in favor of four independent directors currently seated on the board. The letter also asked shareholders to vote against a proposal by Exelon to expand the number of seats on the board and elect a slate of nine new directors. The NRG shareholder meeting is scheduled for July 21.
CraneÂs letter went on to blast ExelonÂs exchange offer, a takeover bid NRGÂs board has resisted since autumn.
ÂExelonÂs exchange offer, as inadequate as it was when first proposed on October 19, 2008, is even more inadequate today because of NRGÂs dramatic value creation over the past eight months,Â Crane stated in the letter.
He went on to tout NRGÂs recent activity, including its May acquisition of Reliant Energy, a Texas-based retail electricity provider.
Last week, Exelon sent its own letter to NRG shareholders, claiming the current board of directors did not have shareholder interest in mind.
ÂWe believe the current NRG management and board of directors have no intention of allowing you to realize the value of a combination with Exelon on any terms Â despite the clear and substantial benefits we believe that a combination will provide to you,Â John W. Rowe, Exelon chief executive, said in the letter.
Shares of NRG were up 66 cents, to $24.10, and Exelon shares were up $1.07, to $51.22, in afternoon trading.
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