French energy firm drops bid for Constellation
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Associated Press
Published: October 15, 2008
PARIS (AP) - French energy company Electricite de France SA said Wednesday it is dropping its bid for Constellation Energy Group Inc., a major U.S. power wholesaler, because of the global credit crisis.
EdF said it still hopes to develop four new nuclear reactors in the United States and is studying other options.
EdF and Constellation are partners in UniStar Nuclear Energy, the company that is working to build Areva’s evolutionary power reactor in the U.S.
MidAmerican Energy Holdings Co., a unit of Warren Buffett’s Omaha, Neb.-based Berkshire Hathaway, last month said it would buy Constellation for $4.7 billion, or $26.50 per share, plus an immediate infusion of $1 billion. Both companies’ boards and shareholders have approved the deal.
EdF, which already owns 9.5 percent of Constellation stock and is a leading nuclear power producer in Europe, called Buffett’s offer inadequate and offered $35 per share.
MidAmerican Energy said Tuesday it has applied with the Federal Energy Regulatory Commission for approval of the takeover.
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