January 8, 2009
Sun coverage: Constellation Energy sale
Constellation headquarters staying in Baltimore
Constellation Energy Group Inc. revived its future as an independent, Baltimore-based company yesterday, calling off its takeover agreement with billionaire investor Warren E. Buffett in favor of a $4.5 billion investment from France's largest utility.
French firm EDF charts future in Maryland
The deal that rescued Constellation Energy Group Inc. yesterday from extinction, ensuring for now a Baltimore future for one of the city's major corporate headquarters, will also lead to the arrival of a new corporation in Maryland with plans to foster an American "renaissance" in the development of nuclear power.
Jay Hancock: Biggest winner in Constellation deal is Buffett
"Warren Buffett loses out to the French" was the gist of several headlines yesterday on Electricite de France's deal to invest $4.5 billion in Constellation Energy Group.
Advice is: Reject Buffett
A proxy advisory firm recommended yesterday that Baltimore's Constellation Energy Group shareholders reject the company's $4.7 billion pending sale to Warren Buffett, raising another doubt about the takeover amid reports that Constellation favors an offer from a French utility.
CEG is reportedly nearing a deal with French firm
Baltimore's Constellation Energy Group Inc. is nearing an agreement to sell to Electricite de France SA half of its nuclear-power business for $4.5 billion and terminate a planned takeover of the entire company by Warren Buffett's MidAmerican Energy Holdings Co., according to a published report last night.
EDF chief briefs French panel on Constellation
The head of Electricite de France SA spoke to a parliamentary commission of France's National Assembly yesterday about its involvement with Constellation Energy Group. Pierre Gadonneix, the chief executive officer of EDF, confirmed the company has started talks with Constellation to buy half of the U.S. utility owner's nuclear business, challenging an agreed takeover by Warren Buffett's MidAmerican Energy Holdings Co. "Our offer responds to the needs of Constellation," Gadonneix told the commission. He said he was optimistic about winning over shareholders of Baltimore-based Constellation, the largest U.S. power marketer and owner of five nuclear reactors and utility Baltimore Gas & Electric. EDF holds the most common stock, with a 9.5 percent stake. EDF offered Dec. 3 to buy a 50 percent interest in Constellation's nuclear plants for $4.5 billion. MidAmerican has agreed to pay $4.7 billion for the whole company, or $26.50 a share. Constellation said it will discuss the rival offer even though its board hasn't changed its recommendation that shareholders vote for the MidAmerican deal at a special meeting Dec. 23. Gadonneix said it's "unlikely" that the meeting of Constellation shareholders will be canceled. "If the shareholders' meeting agrees to the MidAmerican offer," he said, "then ours won't be accepted."
Jay Hancock: EDF's offer appears to have a shot
Electricite de France's proposal to invest $4.5 billion in Constellation Energy Group's nuclear-generation business looks like it has a shot.
CEG to ponder new bid
Constellation Energy Group, which agreed to sell itself to Warren Buffett's MidAmerican Energy Holdings Co. three months ago in the midst of a financial crisis, said yesterday that it will begin talks with its largest shareholder about its unsolicited alternative bid to acquire half of the Baltimore energy company's nuclear business.
Rating agencies review Constellation
Wall Street's three major credit-rating agencies said yesterday that they are studying the latest twist in Constellation Energy Group's pending sale to decide whether changes should be made to the Baltimore company's bond ratings, a source of concern that helped push it to seek buyers this summer.
Constellation to lay off more than 800 workers
Constellation Energy Group Inc. will lay off as much as 8 percent of its work force, or more than 800 people, mostly from the commodities trading division that propelled the company to the brink of bankruptcy this year and forced it into a proposed takeover, company officials said yesterday.
Jay Hancock: Constellation offer: pot of gold or elusive rainbow?
Like the Wizard of Oz, Electricite de France looked into the souls of everybody connected with Constellation Energy Group and offered to grant their greatest desires.
French firm seeks nuclear business of Constellation
French utility Electricite de France, rebuffed in its efforts to acquire Constellation Energy Group, is expected today to offer to buy 50 percent of Constellation's nuclear power business for nearly the same price that MidAmerican Energy Holdings Co. would pay for all of Constellation, sources familiar with the situation said late yesterday.
Under the microscope
Maryland's top energy regulator vowed a thorough review of the sale of Constellation Energy Group as state lawmakers grilled the company's executives about its management and the terms of a deal it struck to avoid a possible bankruptcy.
Constellation Energy replaces CFO
Constellation Energy Group Inc. said today its chief financial officer is stepping down and it will promote the treasurer to replace him.
French firm won't bid again
Constellation Energy Group's largest shareholder, whose higher offer to acquire the Baltimore company was rebuffed for a proposed $4.7 billion deal with Warren Buffett, said yesterday that it will not submit another bid for the firm.
CEG, MidAmerican file for deal approval
Baltimore's Constellation Energy Group and MidAmerican Energy Holdings Co. said yesterday that the two companies filed an application with the Federal Energy Regulatory Commission requesting approval of their proposed $4.7 billion deal. Warren Buffett's MidAmerican agreed to buy Constellation for $26.50 a share last month. FERC's approval is one of several regulatory hurdles the two companies must overcome to close the deal. The companies are asking FERC to act on their application by Jan. 15. The two companies have already filed an application with the Nuclear Regulatory Commission related to Constellation's nuclear plant operations. Berkshire Hathaway Inc., the majority equity holder of MidAmerican, took steps this month to obtain antitrust approval from federal regulators, filing notification of the merger under the Hart-Scott-Rodino Antitrust Improvements Act. In addition, the two companies must gain the approval of the Maryland Public Service Commission, as well as Constellation's shareholders. Constellation Vice Chairman Mike Wallace told employees that the company expects a shareholder vote to place between Thanksgiving and Christmas, according to a memo filed yesterday with the Securities and Exchange Commission.
Rejected French suitor for CEG mulls new bid
Electricite de France chief executive Pierre Gadonneix said yesterday that the company may make a new takeover offer for Constellation Energy Group with buyout firm KKR & Co. and others.
Constellation deal still on
Warren E. Buffett's MidAmerican Energy Holdings Co. said yesterday that it is moving forward with a planned $4.7 billion acquisition of Baltimore-based Constellation Energy Group after completing a review of the BGE parent's retail and wholesale businesses.
Charity, local control mark Constellation Energy buyer
It would hardly be a shock if John Perkins had beefs with MidAmerican Energy Co. After all, he is Iowa's consumer advocate. His job is to look out for the utility's 630,000 electric customers and 550,000 natural gas users statewide.
Constellation seals deal for its sale
Constellation Energy Group sealed an agreement yesterday allowing Warren Buffett's MidAmerican Energy Holdings to buy the company for $4.7 billion, even as the Baltimore firm's largest shareholder was reported to be weighing a higher bid for the company.
Buffett's rescue for Constellation
With a credit crisis threatening its very existence, Baltimore's Constellation Energy Group agreed yesterday to be sold to Warren Buffett's MidAmerican Energy Holdings for $4.7 billion - about half the company's value a week ago.
Buffett kept close watch on CEG, then moved fast
Be fearful when others are greedy. Be greedy when others are fearful.
Collateral, credit crunch took down Constellation
Every one of Constellation Energy Group's 1.1 million electric utility customers can relate to the crisis that forced the company into a shotgun takeover yesterday.
Jay Hancock: Constellation brought the near-collapse on itself
Would Constellation Energy's near-collapse and emergency sale have been necessary if the General Assembly hadn't resisted and ultimately quashed its planned merger with Florida's FPL Group two years ago?
A bet on MidAmerican paid off
When investor Warren Buffett bought MidAmerican Energy Holdings Co. for $2 billion in 2000, he bet it would be a good long-term investment even though shares of the company had recently plunged 21 percent.
O'Malley, other Md. leaders hail Shattuck's CEG deal
Two years ago, then-Baltimore Mayor Martin O'Malley and Constellation Energy Group chief executive Mayo A. Shattuck III were trading barbs in public and through advertising campaigns over a proposed 72 percent electricity rate increase.
No short-term changes expected for consumers
Constellation Energy Group officials say they expect no short-term changes for consumers as a result of the company's acquisition by MidAmerican Energy Holdings. They expect the companies to remain independent if the deal is approved, which would take place in about nine months. Here are answers to key questions for consumers:
Golden parachutes: What CEG executives get if they leave after sale
What Constellation Energy executives receive if they depart after the sale to MidAmerican Energy. (Does not include tax benefits or accelerated receipt of incentive stock and options, which cannot be valued from existing filings.)
BGE parent in play, could be sold
Constellation Energy Group, one of only two Fortune 500 companies in the region, said yesterday that it is in active discussions with "potential strategic partners," a process that could include the sale of the entire company, to avert a credit squeeze in its energy trading business.
Constellation timeline
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