Two shareholders of Houston-based NRG Energy have teamed to buy a greater share of the company in a bid to get a seat on NRG’s board of directors.
Elliott Associates, a hedge fund, and Dallas-based Bluescape Energy Partners have said that NRG’s stock is “deeply undervalued,” and want to push for operational and financial changes at NRG, according to a filing with the Securities and Exchange Commission.
To represent them on the board, the companies are considering John Wilder, a former CEO of TXU from 2004-07, who oversaw TXU’s sale to private equity firms. Later, the company became Energy Future Holdings, which declared bankruptcy in 2014.
The move to nominate Wilder could be a sign of the direction that Elliott and Bluescape want NRG to take, according to analysts with the energy investment banking firm Tudor, Pickering & Holt.
“The initial reaction is that the new investors would like to see NRG go private or merge with another strategic,” analysts said in an email.