NRG proposes to acquire Calpine for $9.56B of stock

TEL AVIV (MarketWatch) — NRG Energy Inc., the Princeton, N.J., power-generation company, proposed to acquire Calpine Corp. for stock valued at $9.56 billion. Calpine is the San Jose, Calif., electricity provider. NRG has proposed to pay 0.534 share for each share of Calpine. Based on NRG’s closing price of $42.51 on Wednesday, that deal price values each Calpine share at $22.70. That’s a premium of 6.7% to Calpine’s closing price of $21.20 on Wednesday. In turn, based on 421 million shares outstanding, the deal values Calpine at $9.56 billion. The companies announced the proposed deal in separate statements late on Wednesday. Calpine said its board would review the proposal; Goldman Sachs is advising the company. In its statement, NRG noted that the deal price is 16% above Calpine’s May 13 closing price of $19.81. NRG outlined the proposal in a May 14 letter to Calpine. In the letter, […]

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