Exelon abandons $7.5 billion bid for NRG Energy

Earlier today, Exelon (EXC), a utility company with more than five million customers in Illinois and Pennsylvania, announced it was immediately withdrawing its bid to buy NRG Energy (NRG) following an unsuccessful proxy fight. NRG has more than 1.7 million customers in Texas, and it has power plants capable of generating enough energy to power more than 20 million homes.

Exelon's announcement follows the results of a hotly-contested proxy contest held by NRG, in which Exelon attempted to elect its own slate of directors. The attempted acquisition was fought by NRG's existing management, who issued a letter to shareholders saying, "Exelon's offer continues to undervalue NRG and does not compensate you adequately." The letter cited several analyst reports, which valued NRG at $32 to $42 per share, compared to the effective price of the stock deal offered by Exelon of about $26 per share.