Credit Suisse Starts NRG Energy at Outperform
Credit Suisse started covering NRG Energy (NRG) at outperform, after news that the company rejected Mirant (MIR)'s $8 billion cash and stock offer.
Analyst Dan Eggers says the rejection letter said the offer is too low. NRG Energy's management also saw cyclical upswing opportunities and noted concerns about Mirant's growth and stock liquidity. Eggers is less inclined to believe the Mirant deal will come. He is hard pressed to come up with a white knight if Mirant pushes ahead since the most logical candidates seem to have issues, ranging from market concentration to strategic planning to ongoing mergers and acquisition. He says that a possible surprise could come from international players.