EDF bids $4.5 billion for 50 per cent of Constellation nuclear assets

03 December 2008

Electricite de France SA, the world's largest nuclear power company, has offered to buy a 50 per cent stake in Constellation Energy Group Inc's  nuclear business for $4.5 billion, to trump a $4.7 billion takeover by Warren Buffett's MidAmerican Energy Holdings Co.

The bid, which values Constellation at around $52 per share - a 96 per cent premium to the proposed MidAmerican offer - includes an up-front $1 billion cash investment in Constellation and an option to sell up to $2 billion of non-nuclear generation assets to EDF.

The offer, made through EDF subsidiary EDF International, proposes to acquire through a joint-venture a 50 per cent ownership interest in Constellation's nuclear generation and operation business for $4.5 billion.

The cash investment of $1 billion will be credited against the purchase price for EDF's interest in the nuclear generation business.

EDF expects to get the necessary regulatory approvals for the acquisition and close the transaction within six to nine months, upon Constellation's termination of its proposed transaction with MidAmerican Energy Holdings Company and execution of a definitive agreement with EDF.

Berkshire Hathaway Inc subsidiary MidAmerican agreed to buy Constellation in September, rescuing it from the brink of bankruptcy. It also gave the power company an immediate $1 billion cash infusion.