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Court dismisses remaining allegations against Exelon

Campaign to acquire uninterested NRG Energy Inc. to continue.A recent court ruling has given Exelon Corp. approval to can continue its chase of Princeton’s NRG Energy Inc.

The U.S. District Court for the Southern District of New York dismissed on June 22 the remaining allegations raised by NRG (NYSE: NRG) regarding an acquisition proposal from Exelon (NYSE: EXC), in Chicago.

Power generation company NRG filed suit in March demanding utility company Exelon change its public disclosures concerning a tender offer. NRG claimed Exelon did not intend to complete the proposed exchange according to its stated terms. NRG’s board of directors had rejected the company’s takeover bid, and claimed the subsequent tender offer by Exelon to purchase shares was a leverage tactic to force the deal.

Following Monday’s ruling, Exelon said it was committed to combining with NRG. Exelon wants to seat nine new directors to the NRG board in time for the company’s July 21 annual stockholder meeting.

NRG’s board remained adamant Monday in its opposition to Exelon’s takeover efforts, issuing the following statement: “NRG continues to believe that Exelon’s proposal significantly undervalues NRG and remains highly conditional — including the need to obtain financing — and very risky because of rating agency and other concerns.”

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