| EDF offers $6.5 bn for Constellation Energy assets | |
| Press Trust of India / London December 3, 2008, 20:31 IST | |
European energy giant Electricit de France SA (EDF) today offered to buy assets worth $6.5 billion of Constellation Energy Group, including half of its nuclear generation and operation business.
The company has made a bid to acquire 50 per cent of Constellation Energy's nuclear generation and operation business for about $4.5 billion. In addition, EDF proposes to acquire the non-nuclear assets worth $2 billion.
EDF's move has come as a rival bid for legendary investor Warren Buffett's MidAmerican Energy Holdings, which had made a $4.7 billion takeover bid for Constellation.
Interestingly, the offer from MidAmerican Energy Holdings, a unit of Buffett's Berkshire Hathaway, was accepted and is to be voted on by the shareholders of Constellation Energy on December 23.
Meanwhile, EDF in a statement today said it has, through its subsidiary EDF International, sent a letter to the board of directors of Constellation Energy proposing through a joint venture "a 50 per cent ownership interest in Constellation's nuclear generation and operation business for $4.5 billion".
"The transaction represents implied value for Constellation of about $52 per share, or 96 per cent premium to proposed MidAmerican Transaction proposal, (and) includes up-front $1 billion cash investment in Constellation and option to sell up to $2 billion of non-nuclear generation assets to EDF," the statement noted.
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