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Exelon NRG Energy saga continues

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(Presentation May 27) NRG Energy at Deutsche Bank Securities Energy & Utilities Conference.

(Noise from OptionMonster May 27) Options prepare for drop in NRG. I am not expert in Options, but I think stock price should affect option (derivative) price, not the other way around (as the NRG options shown in Yahoo Finance). Maybe guys at OptionMonster make more money from writing articles (selling Ads) compared to trading options 😀

(Daily Herald May 26) Analyst: Exelon will need to increase its bid for NRG

(Business Wire May 21) Exelon Receives FERC Approval for Proposed NRG Acquisition. Notice this is one of many regulatory hurdles EXC needs to overcome before the acqusition going through.

(WSJ May 15) Exelon CEO: If NRG Energy Bid Fails, Will Look Elsewhere

Notice earlier this year Exelon won 51% NRG shareholder via. the tender offer (WSJ article).

Here is my wild thought: Buffett’s NRG Energy shares ave. cost $34.37 (underwater in today’s price around $18.80). Utility is a large part of Berkshire business (via. Mid-American Energy holding subsidiary). Buffett never involved in a bidding bar with other companies. But Buffett has been a white knight in the past, such as the Soloman Brothers (convertiable preferred shares) buy.

I think it could happen if Exelon guy push too hard on this one. In that case, when Exelon withdraw the offer, the NRG stock could get a bump, not the typical drop when we saw a buyer walks away 🙂

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