Maryland Confirms Decision On Constellation/EDF Deal Due Friday
2009年10月30日 - 11:32PM
Dow Jones News
Maryland regulators plan to rule Friday on a bid by Electricite
de France SA (EDF.FR) to buy nearly half of the nuclear power
business of Constellation Energy Group Inc. (CEG).
The expected decision comes as Constellation Energy executives
rejected reports the state-controlled power company is losing
interest in the $4.5 billion deal amid a change of chief executives
at EDF. Constellation Chairman and CEO Mayo Shattuck reiterated the
Baltimore power company remains on track for the sale with a
closing possible in two weeks. Shattuck made the comments during
the company's regularly scheduled, third-quarter earnings call
Friday.
A spokeswoman for the Maryland Public Service Commission said in
an email a decision from the board is likely around noon EDT.
Maryland represents the last regulatory hurdle for the deal, with
the commission deciding in June to take a deeper look at the
agreement.
Questions remain over whether EDF is still interested. A report
in the Financial Times earlier Friday said EDF is facing pressure
from the French government to abandon the deal, citing unidentified
government officials. A senior French government official speaking
under conditions of anonymity told Dow Jones Newswires Friday the
French government has so far taken no position on whether
state-controlled EDF should drop the deal, but EDF's designated
chairman and CEO, Henri Proglio, told lawmakers this week that he
had doubts about whether the deal is in the company's best
interests.
Shattuck said he has no reason to believe EDF's opinion on the
deal has changed. The two sides continue work toward a closing with
the sale needing no further approval from the board of either
company. He added Constellation has substantial break-up
protections, and the companies will move forward if they win state
approval as long as any conditions placed on the deal are fair and
reasonable.
Constellation struck the deal with EDF in December in an effort
to remain a publicly traded company. The company earlier had agreed
to be bought by Warren Buffett's MidAmerican Energy Holdings Co. as
the possibility of filing for bankruptcy protection loomed last
fall, but opted instead for the EDF partnership. The French
company's interest has been driven in part by the opportunity to
expand its large nuclear power business into the U.S.
In addition to the nuclear power business, Constellation owns a
central Maryland utility and non-nuclear power plants in the
eastern U.S.
-By Mark Peters, Dow Jones Newswires; 212-416-2457;
mark.peters@dowjones.com