(Adds details, background)
By Michael Flaherty
Feb 13 NRG Energy Inc, the largest U.S.
independent power producer, said it would appoint two directors
in a deal with activist investor Elliott Management and private
equity firm Bluescape Energy Partners.
John Wilder, Bluescape Energy's executive chairman, and
Barry Smitherman, former chair of the Public Utility Commission
of Texas, have been appointed to the board, NRG said in a
statement on Monday. Directors Howard Cosgrove and Edward Muller
will step down.
As part of the agreement, NRG said it would set up a
five-member committee to look into cost-cutting, asset sales,
capital allocation and broader strategic initiatives.
That committee will be chaired by Wilder, the former chief
executive officer of utility TXU Corp.
NRG's struggling GenOn Energy affiliate and its solar-power
division are among the units the committee is expected to
"The Committee plans to expeditiously conduct its review and
make any relevant recommendations to the Board," the company
said in a statement.
Elliott and Bluescape are also targeting significant cost
cuts at NRG.
Shares of the company, whose market value is around $5.3
billion, have risen more than 10 percent since Elliott and
Bluescape announced their joint investment on Jan. 17. Their
combined holdings are around 10 percent of NRG.
(Additional reporting by Komal Khettry in Bengaluru; Editing by
Lisa Von Ahn)