nuclear-news

Nuclear company Exelon’s low stock price making things difficult

Exelon’s low stock price stymied potential bid for N.C. utility, Crain’s Chicago Business By: Steve Daniels January 26, 2011 — Exelon Corp.’s low stock price is making it harder for CEO John Rowe to pull off the big acquisition he’s looking for. Mr. Rowe said Wednesday that he considered bidding for Progress Energy Inc., the North Carolina-based utility holding company Duke Energy Corp. moved this month to acquire for $13.7 billion in stock. But the Exelon chief said he couldn’t make the numbers work.

“At our current share price, the (earnings) accretion-dilution (formula) didn’t meet our test,” he said during the company’s fourth-quarter earnings call with analysts and investors.

But he said Chicago-based Exelon’s hunt for a merger candidate would go on……

Exelon’s market value is hurt by a projected sharp drop in 2012 profits caused by the expiration of some above-market power-purchase contracts that will make the company more vulnerable to currently low wholesale power prices.

Exelon, one of the nation’s largest power companies, owns Commonwealth Edison Co. and the nation’s largest fleet of nuclear power plants.

Exelon’s low stock price stymied potential bid for N.C. utility | Utilities | Crain’s Chicago Business

January 28, 2011 - Posted by Christina Macpherson | business and costs, USA