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Exelon, which earlier on Thursday raised its offer to buy NRG Energy, said it would look to sell the 2,410 MW of capacity NRG owns in Louisiana along with the merchant generator's foreign holdings after the deal closes. The Chicago-based company sweetened its offer for merchant generator NRG Energy by 12.4%, saying it would provide NRG shareholders with 0.545 shares in Exelon for every NRG share they hold. Exelon in October offered 0.485 shares of Exelon for each NRG share, a proposal NRG's board and management rejected as too low. On Thursday, Exelon said its new offer, which represents its "best and final" proposal, would increase the value of the deal by more than $3 billion. Should it complete the deal, Exelon said it would look to sell the NRG assets in a move designed to protect its investment-grade credit rating.

NRG's board of directors has unanimously rejected Exelon Corp.'s unsolicited takeover bid, NRG announced November 24. Howard Cosgrove, chairman of the NRG board, said in a press statement that the "Exelon offer is inadequate, dilutive, significantly undervalues NRG and does not fully reflect the underlying fundamental value of NRG's assets, operations and strategic plan," including its market position and prospects for future growth. NRG, based in Princeton, New Jersey, owns and operates one of the country's largest and most diverse power-generating portfolios, including its 44% stake in the two-reactor South Texas Project. Two additional reactors are being considered for that nuclear power plant. NRG added that Exelon's offer might have required "refinancing of all or a significant amount of NRG's existing indebtedness and yet Exelon has not publicly announced that it has committed financing for the offer."

NRG says again Exelon bid too low * Says financing plan "troubling" * Exelon unavailable for comment LOS ANGELES, March 12 (Reuters) - NRG Energy (NRG.N), trying to fight off a hostile bid from rival utility Exelon Corp (EXC.N) worth potentially about $5.6 billion, blasted theoffer as being too cheap and urged shareholders on Thursday again to reject the deal. Top NRG executives have been trying to fend off Exelon since October, when the offer to swap 0.485 Exelon shares for each NRG share was broached. [ID:nN26538238] But Exelon, the largest nuclear power operator in the United States, said last month its bid had won support from a majority of NRG's shareholders, and hence extended the deadline on its offer to June 26.

Exelon Corporation and NRG Energy, Inc.; South Texas Project, Units 1 and 2; Notice of Consideration of Approval of Application Regarding Proposed Merger of NRG Energy, Inc. and Exelon Corporation, and Indirect Transfers of NRG South Texas LP's Facility Operating Licenses, and Opportunity for a Hearing The U.S. Nuclear Regulatory Commission (the Commission, NRC) is considering the issuance of an order under Title 10 of the Code of Federal Regulations (10 CFR) Section 50.80 approving the indirect transfer of control of the Facility Operating Licenses, which are numbered NPF-76 and NPF-80, for the South Texas Project (STP), Units 1 and 2, respectively, to the extent held by NRG South Texas LP (NRG South Texas).

Toshiba Inc. has shaved about $1.4 billion off its price to build two nuclear reactors, but it's unlikely to ever reach an amount within San Antonio's price range, NRG Energy executives said Thursday. "We would expect ... the price estimate that Toshiba will come back with may be outside the affordability range for their ratepayers," Steve Winn, CEO of the NRG-owned Nuclear Innovation North America, said at a financial analysts' meeting in Houston. At issue is the cost San Antonio's CPS Energy and NRG Energy are willing to pay contractor Toshiba to build two nuclear reactors outside Bay City. CPS Energy has promised ratepayers and the City Council that it will pursue the deal as long as it can limit power bill increases to 5 percent every other year for the next decade. This can be done if the total project, with financing, will cost about $13 billion, utility officials say. To hit that amount, Toshiba's costs need to come in about $8 billion. But the Japanese contractor, NRG confirmed, estimated its price at $12.3 billion in October.

Toshiba Inc. has shaved about $1.4 billion off its price to build two nuclear reactors, but it's unlikely to ever reach an amount within San Antonio's price range, NRG Energy executives said Thursday. "We would expect ... the price estimate that Toshiba will come back with may be outside the affordability range for their ratepayers," Steve Winn, CEO of the NRG-owned Nuclear Innovation North America, said at a financial analysts' meeting in Houston. At issue is the cost San Antonio's CPS Energy and NRG Energy are willing to pay contractor Toshiba to build two nuclear reactors outside Bay City. CPS Energy has promised ratepayers and the City Council that it will pursue the deal as long as it can limit power bill increases to 5 percent every other year for the next decade. This can be done if the total project, with financing, will cost about $13 billion, utility officials say. To hit that amount, Toshiba's costs need to come in about $8 billion. But the Japanese contractor, NRG confirmed, estimated its price at $12.3 billion in October.

A federal lawsuit filed against Exelon Corp. shouldn't affect plans to build a nuclear plant in Victoria County, Exelon officials said. NRG Energy Corp. filed its lawsuit Tuesday in the Southern District of New York, asking the court to correct Exelon's false and misleading claims, an NRG news release stated. NRG said that Exelon's exchange offer serves as a tool to pressure the NRG board of directors into accepting Exelon's inadequate offer to take over the company. The news release calls the offer a ruse because such an offer would cost billions more than Exelon's current merger bid because it would require additional refinancing for NRG debt.

CPS Energy of San Antonio, a 50-50 partner with a unit of NRG Energy (NRG.N) in a plan to build two new nuclear reactors in Texas, asked a state court to "clarify" its liability should it pull out of the project, the company said on Monday. Stocks The San Antonio municipal utility said it filed a petition in state district court late Sunday "to clarify the roles and obligations" of CPS Energy and Nuclear Innovation North America (NINA), a partnership of NRG and Toshiba Corp (6502.T). NINA is developing a two-unit expansion plan at the South Texas Project, Texas largest nuclear station, expected to cost more than $10 billion. Rising cost estimates for the project have created concern among San Antonio's city leaders.

CPS Energy of San Antonio, a 50-50 partner with a unit of NRG Energy (NRG.N) in a plan to build two new nuclear reactors in Texas, asked a state court to "clarify" its liability should it pull out of the project, the company said on Monday. Stocks The San Antonio municipal utility said it filed a petition in state district court late Sunday "to clarify the roles and obligations" of CPS Energy and Nuclear Innovation North America (NINA), a partnership of NRG and Toshiba Corp (6502.T). NINA is developing a two-unit expansion plan at the South Texas Project, Texas largest nuclear station, expected to cost more than $10 billion. Rising cost estimates for the project have created concern among San Antonio's city leaders.

After a nine-month fight, Exelon's $7.4 billion, all-stock bid to create the nation's largest power generator by buying NRG Energy is coming to a head, maybe. NRG shareholders on Tuesday will vote on Exelon's proposal to increase the size of NRG's board and with it, a group that would be more open to a deal. NRG has rejected two previous offers. NRG repeatedly has said a deal isn't being ruled out, but that Exelon has to bring more to the table. Many industry experts agree.

Exelon Corp. has won approval from federal energy regulators for its $5.2 billion hostile takeover of NRG Energy Inc., furthering the company's bid to become the largest U.S. producer of electricity. The Federal Energy Regulatory Commission voted in favor of Exelon's petition to buy NRG. But the Justice Department, Nuclear Regulatory Commission and at least five states still must approve the deal. NRG responded that the "board and management team continue 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."

CPS Energy, San Antonio's electricity company, sued NRG Energy for $32 billion because of contractual disputes involving the expansion of the South Texas Project nuclear power facility. CPS owns a stake in the facility, which NRG also owns and operates. CPS says in the lawsuit that NRG, NRG's Nuclear Innovation North America joint venture, and Toshiba, "made misrepresentations and also failed to disclose project critical information to induce CPS Energy to participate in the project."

CPS Energy, San Antonio's electricity company, sued NRG Energy for $32 billion because of contractual disputes involving the expansion of the South Texas Project nuclear power facility. CPS owns a stake in the facility, which NRG also owns and operates. CPS says in the lawsuit that NRG, NRG's Nuclear Innovation North America joint venture, and Toshiba, "made misrepresentations and also failed to disclose project critical information to induce CPS Energy to participate in the project."

"A meeting between feuding officials of NRG Energy (NRG.N: Quote, Profile, Research) and the San Antonio municipal electric utility ended abruptly on Monday with no resolution on the future of a $10 billion proposed expansion of Texas' largest nuclear facility. An NRG spokesman said later that the parties will meet again on Tuesday. San Antonio Mayor Julian Castro last week invited the partners to negotiate a settlement to avoid a lengthy court battle scheduled later in January between NRG, its nuclear development arm and CPS Energy which is backing off a plan to invest in two new 1,350-megawatt reactors due to rising cost projections."

"* Second setback to new US reactors in January * NRG sees possible $400 mln pretax write-off NEW YORK, Jan 29 (Reuters) - NRG Energy Inc (NRG.N) CEO David Crane said Friday the company would not pursue the $10 billion construction of two nuclear reactors in Texas, if an ongoing dispute with co-owner CPS Energy causes NRG to miss out on federal loan guarantees needed to finance the project. This could be the second setback for new nuclear reactors in the United States, after FPL Group Inc (FPL.N) said this month it would halt billions of dollars in capital expenditures, including development of two new reactors, after getting a negative rate case ruling from Florida regulators."

NRG Energy, Inc. rejected Sunday a $6.1 billion takeover bid by Exelon Corp., openly challenging whether the Chicago-based parent company of Commonwealth Edison could successfully manage what would have been the country's largest power generation company. Exelon made an unsolicited all-stock offer last month that valued NRG at a 37 percent premium, a figure that dipped to 9.4 percent by the close of the stock market Friday. The offer proved underwhelming to the board of directors at NRG, which unanimously turned down a merger it said "significantly undervalues" the Princeton, NJ-based company.

The pressure is on Chicago's Exelon Corp. to sweeten its bid for NRG Energy Inc. The New Jersey-based NRG is among four companies said to be receiving loan guarantees from the U.S. Department of Energy to support new nuclear-power plants. If anything, that will make Exelon want it all the more, analysts said. Exelon launched an all-stock takeover bid in October that NRG has rejected as inadequate. NRG's proposed new nuclear plant in Texas "has been the prime reason Exelon is pursuing the company," said Travis Miller, equity analyst at Morningstar Inc. in Chicago. "It's a good growth opportunity."

"A San Antonio municipal utility's public and acrimonious divorce from a proposed two-unit, 2,700-megawatt nuclear power plant is nearly final. San Antonio municipal utility CPS Energy has been trying to separate itself from South Texas Project units 3 and 4 for several months. Last week, a settlement was reached between CPS Energy and Nuclear Innovation North America (NINA) (New York, New York), a consortium of NRG Energy Incorporated /quotes/comstock/13*!nrg/quotes/nls/nrg (NRG 21.84, -0.23, -1.04%) (Princeton, New Jersey) and Toshiba Corporation (TYO: 6502) (Tokyo, Japan) that is developing the two-unit nuclear expansion of the South Texas Project (STP). All that remains is for the CPS Energy board to ratify the deal. Toshiba is the engineering, procurement, and construction firm for STP units 3 and 4. Subcontractors include Fluor Corporation /quotes/comstock/13*!flr/quotes/nls/flr (FLR 42.80, -2.25, -4.99%) (Irving, Texas), Sargent & Lundy LLC (Chicago, Illinois), Bechtel Group Incorporated (San Francisco, California) and Westinghouse (Monroeville, Pennsylvania). "

Power company Exelon Corp expects to extend its hostile bid for NRG Energy Inc past the January 6 deadline as it awaits regulatory approvals, the company said in a regulatory filing on Tuesday. Exelon, which has offered to buy Princeton, New Jersey-based NRG at a price now valued at about $5.8 billion, has sought U.S. regulatory approval for the deal, although NRG management has rejected the offer as too low.

NRG Energy and Reliant Energy remain mum about a report this week that NRG may buy Reliant's retail electric business, but that hasn't stopped analysts from discussing the pros, cons and possible motives for such a move. According to SparkSpread.com, an online energy industry news site, senior NRG executives expressed interest in buying the Reliant business during an investor dinner at a financial conference in Phoenix last week. The report cited unidentified "market watchers."

Two years ago when NRG Energy rebuffed an $8 billion buyout offer, it said the bid was far too cheap to be taken seriously. There may be a bit of shareholder remorse this week, with prospective buyers now eying deals through the lense of a global economic downturn. Nuclear power giant and utility operator Exelon late Sunday night made an unsolicited $6.2 billion all-stock bid for NRG in a proposal that would create the nation's largest power company. The combined Exelon and NRG would be big enough to power nearly 45 million homes with 47,000 megawatts, Chicago-based Exelon said. It would have a diverse power mix and a market capitalization of $40 billion.

Exelon Corp launched a hostile bid for NRG Energy Inc (NRG.N: Quote, Profile, Research, Stock Buzz) on Tuesday, two days after the power producer rejected its $6 billion-plus offer. "Their decision to reject our proposal, without any discussion with us as to the merits or structure of our proposal, has left us with no choice but to bring the offer directly to the NRG shareholders," Exelon Chairman and Chief Executive John Rowe said in a statement.

NRG Energy Inc. said Wednesday that it has turned down Exelon Corp.'s revised hostile takeover bid of $8 billion in stock because it undervalues the business. Last week Exelon, the nation's largest nuclear power company, sweetened its offer by about $1 billion because of newly identified cost savings and NRG's recent $287.5 million deal for Reliant Energy's Texas retail business. In a letter to Exelon CEO John Rowe, Princeton-based NRG said it found the new bid was not in its shareholders' best interest but said it represented a "step in the right direction." NRG said it is still open to any proposal that properly accounts for its "fundamental value and extraordinary growth prospects." Exelon, Chicago, previously said that its most recent bid was its "best and final offer."