MidAmerican offers $4.7 billion for BG&E parent Constellation, promises autonomy

摘要

Caught in a crunch that produced a 62% drop in its stock price since the start of September, and almost 50% last week alone, Constellation Energy Group found a white knight on Thursday as MidAmerican Energy Holdings tentatively agreed to buy it for $26.50/share. With about 178.33 million Constellation shares outstanding, the deal would be worth $4.73 billion.rnThe signing of a definitive agreement appeared imminent at press time, but was expected to give MidAmerican - majority-owned by Berkshire Hathaway, whose chairman is Warren Buf-fett - the right to pull out if it determines Constellation's business and/or assets have "materially deteriorated" since June 30.rnConstellation's stock price, which was $82.10 on June 30, fell as low as $21.50/share before closing down 57 cents at $24.20 on Thursday.rn"We strongly believe this transaction is in the best long-term interest of our investors, employees and the customers and communities we serve," said Constellation Chairman, President, and CEO Mayo Shattuck. "The financial services sector and energy commodity markets have witnessed unprecedented volatility," he said in a statement.