425
Filed by NRG Energy, Inc. pursuant to
Rule 425 of the Securities Act of 1933
Subject Company: NRG Energy, Inc.
Commission File No.: 001-15891
On July 13, 2009, NRG Energy, Inc. (NRG) issued the following press release:
All Four Leading Proxy Advisory Firms Support NRG and
Recommend NRG Stockholders Vote FOR All Four NRG Director Nominees on the
White Proxy Card
Stockholders Recommended to Vote Against Exelons Board Expansion Proposal
PRINCETON,
NJ; July 13, 2009 NRG Energy, Inc. (NYSE: NRG) today announced that RiskMetrics Group
(formerly Institutional Shareholder Services), PROXY Governance, Inc., Glass Lewis & Co., and
Egan-Jones Proxy Services, the nations four leading proxy advisory firms, recommend that their
clients vote FOR the election of NRGs highly qualified and independent director nominees at
NRGs 2009 Annual Meeting of Stockholders to be held on July 21. All of the proxy advisory firms
also recommend that NRG stockholders vote AGAINST Exelons Board expansion proposal.
We are pleased that RiskMetrics, PROXY Governance, Glass Lewis, and Egan-Jones all support the
election of all four of NRGs director nominees and are unanimously opposed to expanding the NRG
Board. While we appreciate the support weve received from the proxy advisors, we very much
appreciate that our shareholders will be making their own decisions based on a variety of issues
and opinions, said David Crane, President and Chief Executive Officer of NRG. NRGs current
directors have overseen a five-year period of growth and value creation and have contributed to
what we believe is an unmatched record of financial, operational and transactional execution during
that time. Regardless of the outcome with Exelon, our Board and management will remain committed,
as we always have been, to driving value for our stockholders and remaining open to offers at the
right price and on the right terms.
In its July 13, 2009, report, RiskMetrics (RMG) noted*:
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Given RMGs conclusion that Exelons current bid is not compelling enough to support
splitting the board with nine dissident nominees, RMG recommends that shareholders vote on
the Management Proxy (White Card), and support the re-election of all the incumbent
nominees. (emphasis added) |
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On balance, we conclude that Exelons current bid is not compelling enough to support
splitting the board with nine dissident nominees. Virtually all of the NRG shareholders to
whom we spoke expressed a belief that Exelon should sweeten its offer. (emphasis added) |
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The downside to supporting Exelon at the annual meeting may be to embolden Exelon and
to undercut NRGs negotiating leverage, with the net result a failure to maximize value...
(emphasis added) |
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The nearly unanimous opinion of shareholders with whom we spoke was that the NRG
management team had done an exemplary job over recent years in creating value. (emphasis
added) |
PROXY Governance in its July 9, 2009 report noted*:
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As the incumbent board has demonstrated its commitment to shareholder value not only
through its willingness to engage Exelon in September 2008, but through its ongoing
initiatives to improve operating efficiencies, its willingness to act on significant but
short-fuse opportunities such as Reliant Retail, and its long-term strategy to strengthen
the companys competitive stance in a carbon-constrained economy, we believe shareholders
will be best served by re-electing the incumbent nominees. (emphasis added) |
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In September 2008, before the public tender offer and the proxy contest, NRG
voluntarily met with Exelon to begin exploring strategic options. By its own account, NRG
expected to continue those discussions at industry events in November, in the hope
financial markets would have begun to calm by then. The clear implication is that, far from
being entrenched, the companys management and board are open to strategic discussions
which might maximize shareholder value and that the issue remains what it was last
September, the question of whether Exelon will pay full value for the companys existing
operations and future potential. (emphasis added) |
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In NRGs strategies over the past five years one sees an acute awareness of
opportunity, and a deep understanding of how and where to hedge various risks. The
opportunistic purchase of Reliant Retail at 1.5x average adjusted EBITDA, significantly
below market valuations of 4.0x to 6.0x for similar assets is the most recent case in
point. (emphasis added) |
Glass Lewis, in its July 9, 2009, report, stated the following*:
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We find no reason to recommend for the election of the Dissident [Exelon] nominees
to the NRG board of directors. In our opinion, the board and its advisors have given
Exelons proposals and Offer reasonable consideration. (emphasis added) |
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We note that the board has not closed itself off from future discussions regarding
a potential transaction with Exelon nor has it prohibited NRG shareholders from tendering
their shares to Exelon under the revised Offer. Further, we note that the reelection of the
incumbent director nominees does not block Exelons revised Offer. |
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We also believe that the election of the Dissident [Exelon] nominees could give Exelon
an unnecessary advantage in a strategic transaction involving NRG. In our opinion, the
election of the incumbent nominees will help ensure that the NRG board remains open to any,
and all, potentially interested parties and proposals. (emphasis added) |
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Given that we do not believe it is in the best interests of shareholders to support
Exelons nominees, we do not believe shareholders should support this expansion in the
Companys board. (emphasis added) |
Egan-Jones in its July 9, 2009 report stated*:
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We believe, as reportedly so do several significant shareholders of the Company, that
Exelons revised offer of July 2 continues to undervalue the Company, thereby making
furtherance of its proxy contest undesirable at this time. |
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We are of the view that the election of the Exelon nominees would not contribute
meaningfully to the quality of the Companys board of directors. |
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We believe that election of the slate of director nominees presented by the
management is in the best interest of Company and its shareholders. |
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We believe that approval of this proposal is not in the best interests of the Company
and its stockholders. |
Crane concluded, We strongly urge all NRG stockholders to vote FOR our director nominees, in
accordance with the recommendations of RiskMetrics, PROXY Governance, Glass Lewis and Egan-Jones,
on the WHITE proxy card, and AGAINST Exelons proposal to expand the Companys Board.
NRG stockholders are reminded that their vote is important, no matter how many shares they own.
Whether or not they attend the Annual Meeting, NRG stockholders are encouraged to submit a WHITE
proxy by Internet, telephone or by signing and dating the WHITE proxy card itself and returning it
as soon as possible. Even if you have already voted by using the blue card, you can still change
your vote by using the WHITE proxy card.
NRG stockholders may obtain copies of the exchange offer documents or proxy solicitation materials
which have been filed with the SEC at www.sec.gov. Any NRG stockholders who have questions or
require assistance voting their shares should contact MacKenzie Partners, Inc., which is assisting
NRG in this matter, at 800.322.2885.
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Permission to use quotations was neither sought nor obtained. |
About NRG
NRG Energy, Inc., a Fortune 500 company, owns and operates one of the countrys largest and most
diverse power generation portfolios. Headquartered in Princeton, NJ, the Companys power plants
provide more than 24,000 megawatts of generation capacityenough to supply more than 20 million
homes. NRGs retail business, Reliant Energy, serves more than 1.7 million residential, business,
commercial and industrial customers in Texas. A past recipient of the energy industrys highest
honorsPlatts Industry Leadership and Energy Company of the Year awards. NRG is a member of the
U.S. Climate Action Partnership (USCAP), a group of business and environmental organizations
calling for mandatory legislation to reduce greenhouse gas emissions. More information is available
at www.nrgenergy.com.
Important Information
In connection with its 2009 Annual Meeting of Stockholders (the 2009 Annual Meeting), NRG Energy,
Inc. (NRG) has filed a definitive proxy statement on Schedule 14A with the Securities and
Exchange Commission (the SEC). INVESTORS AND STOCKHOLDERS OF NRG ARE URGED TO READ THE PROXY
STATEMENT FOR THE 2009 ANNUAL MEETING IN ITS ENTIRETY BECAUSE IT CONTAINS IMPORTANT INFORMATION. In
response to the exchange offer proposed by Exelon Corporation referred to in this communication,
NRG has filed with the SEC a Solicitation/Recommendation Statement on Schedule 14D-9. STOCKHOLDERS
OF NRG ARE ADVISED TO READ NRGS SOLICITATION/ RECOMMENDATION STATEMENT ON SCHEDULE 14D-9 IN ITS
ENTIRETY BECAUSE IT CONTAINS IMPORTANT INFORMATION. This communication does not constitute an offer
to sell or the solicitation of an offer to buy any securities of NRG.
Investors and stockholders will be able to obtain free copies of NRGs definitive proxy statement,
the Solicitation/Recommendation Statement on Schedule 14D-9, any amendments or supplements to the
proxy statement and/or the Schedule 14D-9, any other documents filed by NRG in connection with the
2009 Annual Meeting and/or the exchange offer by Exelon Corporation, and other documents filed with
the SEC by NRG at the SECs website at www.sec.gov. Free copies of the definitive proxy statement,
the Solicitation/ Recommendation Statement on Schedule 14D-9, and any amendments and supplements to
these documents can also be obtained by directing a request to Investor Relations Department, NRG
Energy, Inc., 211 Carnegie Center, Princeton, New Jersey 08540.
NRG and its directors and executive officers will be deemed to be participants in the solicitation
of proxies in connection with its 2009 Annual Meeting. Detailed information regarding the names,
affiliations and interests of NRGs directors and executive officers is available in the definitive
proxy statement for the 2009 Annual Meeting, which was filed with the SEC on June 16, 2009.
Forward-Looking Statements
This communication contains forward-looking statements that may state NRGs or its managements
intentions, hopes, beliefs, expectations or predictions for the future. Such forward-looking
statements are subject to certain risks, uncertainties and assumptions, and typically can be
identified by the use of words such as will, expect, estimate, anticipate, forecast,
plan, believe and similar terms. Although NRG believes that its expectations are reasonable, it
can give no assurance that these expectations will prove to have been correct, and actual results
may vary materially. Factors that could cause actual
results to differ materially from those contemplated above include, among others, risks and
uncertainties related to the capital markets generally.
The foregoing review of factors that could cause NRGs actual results to differ materially from
those contemplated in the forward-looking statements included herein should be considered in
connection with information regarding risks and uncertainties that may affect NRGs future results
included in NRGs filings with the SEC at www.sec.gov. Statements made in connection with the
exchange offer are not subject to the safe harbor protections provided to forward-looking
statements under the Private Securities Litigation Reform Act of 1995.
Your vote is important, no matter how many or how few shares you own!
If you have any questions, require assistance with voting your WHITE proxy card,
or need additional copies of the NRG proxy materials, please contact:
proxy@mackenziepartners.com
(212) 929-5500 (Call Collect) or TOLL-FREE (800) 322-2885
To vote your shares, please sign, date and return the enclosed WHITE proxy card by mailing it in
the enclosed preaddressed, stamped envelope. Or you may vote the WHITE proxy card via
phone or Internet by following the instructions on the card.
We encourage you to disregard and not return any blue proxy cards that you receive from Exelon.
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Investors:
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Media: |
Nahla Azmy
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Meredith Moore |
609.524.4526
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609.524.4522 |
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David Klein
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Lori Neuman |
609.524.4527
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609.524.4525 |
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Erin Gilli
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David Knox |
609.524.4528
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713.795.6106 |