Firm in its rejection of unsolicited takeover moves by a fellow merchant power generator, Princeton, NJ-based NRG Energy, Inc. late last Monday asked Delaware’s Chancery Court to dismiss a complaint filed last month by Mirant Corp, the would-be acquirer of NRG. Mirant sued over NRG’s staunch rejection of its proposed buyout offer as being undervalued and offering a weak stock.
In its filing, NRG said Mirant’s contention is no longer relevant, contending “there is no actual controversy because the issue of whether Mirant is improperly using NRG’s confidential information in connection with its merger proposal is moot.” NRG said that “a declaratory judgment would leave the parties exactly where they stand today — with a proposal that was unanimously rejected by NRG’s board.”
Mirant was not quoted as responding in financial news wires carrying reports on NRG’s latest move.
The accusations between NRG and Mirant surfaced last week as part of the lawsuit in which Mirant asked the Delaware court to order NRG not to try to block Mirant’s acquisition attempt, alleging that NRG is using a “transaction ploy” to reject the offer, claiming confidential information has been used from a former NRG financial adviser (see Daily GPI, June 2).
At that time, Mirant told news media it had not received any confidential information, and NRG responded that the lawsuit is “a desperate attempt to compensate for the fact that Mirant’s proposal significantly undervalues NRG,” a claim the latter company made in a rejection letter sent to Mirant earlier in May.
The lawsuit did not name the alleged financial adviser, although NRG’s May 23 rejection letter clearly mentioned Goldman Sachs, which was involved in Mirant’s three-year Chapter 11 bankruptcy that ended last January.
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