Exelon won't increase $6 billion offer for NRG

Exelon said it will start the exchange offer Wednesday for all of NRG's shares.

"While we would have greatly preferred to enter into direct negotiations with NRG's board and management, 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," John Rowe, Exelon's chairman and chief executive, said in a statement.

Earlier Tuesday, the company said it had no intention of raising its offer.

"We think the offer is sweet as it is," Chris Crane, Exelon's president and chief operating officer, told analysts at the annual Edison Electric Institute meeting in Phoenix.

Chicago-based Exelon made the offer last month. The combined Exelon and NRG would create the nation's largest power company, big enough to power nearly 45 million homes with 47,000 megawatts, company officials said.

Princeton, N.J.-based NRG said Exelon was trying to capitalize on NRG's weakened stock price that has been hurt by market turbulence.

It recommended that NRG shareholders take no action while the company's board of directors reviews the proposed exchange offer.

Crane said after the meeting that the Exelon has heard from NRG shareholders who support the deal and that NRG's board should take that into account.

"In this process, if we hear back from NRG shareholders that they are not interested, then we go away, but that's not the feedback we're receiving," Crane told reporters.