Seeking Alpha

NRG Energy (NRG) will merge with GenOn Energy (GEN), creating the largest competitive power...

NRG Energy (NRG) will merge with GenOn Energy (GEN), creating the largest competitive power generation company in the U.S.. GEN shareholders will receive 0.1216 of a share of NRG common stock for each GEN share of common stock, a 20.6% premium to GEN shareholders. NRG shareholders will own 71% of the combined firm, GEN shareholders will own 29%. (PR)
Comments (4)
  • KgenonK
    , contributor
    Comment (1) | Send Message
     
    As a retired employee of Reliant Resources, I can trace 38 years of history of a local regulated electrical company (Houston Lighting & Power). I witnessed the company power generation growth through various types of boiler designs and fuel diversification. All the while, electrical customers were given top priority. After the deregulation of the electrical utilities, the company strategy changed for the worse. NRG buying out GENON closes the history of a locally owned / managed company.
    NRG buying out GENON is great for the shareholders of GENON stock. We now have a better base for our stock to grow on. - KgenonK
    23 Jul 2012, 09:37 AM Reply Like
  • NatGasGHshale
    , contributor
    Comments (90) | Send Message
     
    Agree 100% with "KgenonK." Former employee here too... The former Execs of the parent company of RR walked away with Millions when "they" hoodwinked Houston Industries with their accounting models/books...

     

    Let's hope "KgenonK" is right!
    23 Jul 2012, 11:44 AM Reply Like
  • Dana Blankenhorn
    , contributor
    Comments (5692) | Send Message
     
    I was unclear, at first read, who was buying out whom. Thanks for clearing it up.
    23 Jul 2012, 04:34 PM Reply Like
  • Red Raider
    , contributor
    Comments (223) | Send Message
     
    Kgenonk, et al

     

    I spent nearly 40 years in power generation engineering, construction and operation. The industry changes are mind numbing. I was part of the growth of power generation at Northeast Utilities, which was a merger of Connecticut and Western Massachusetts utilities. Back in the 70's and 80's the engineers were running the business, in what I consider a rational strategy focused on nuclear growth, with gas turbines and pumped hydro for peaking and two 400Mw units for cycling.

     

    The financial people took over almost all utilities in the 1990's aided and usually controlled by politicians and of course lawyers.

     

    You get what you sow. Some seeds!

     

    Happily I am a retired consultant now, and I can look at the results dispassionately. No anguish. The outcome is as expected.
    23 Jul 2012, 06:03 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|