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November 3, 2008

Constellation dips after loan delay

Constellation Energy Group is down 90 cents today after the company disclosed late Friday that an expected line of credit from UBS and RBS got reduced and delayed. CEG needs liquidity after nearly melting down in September. Warren Buffett's MidAmerican Energy Holdings threw it a lifeline, but at the price of being able to buy the company cheaply. At $23.30, the stock is far below Buffett's price of $26.50 per share. We'll learn much more about what has been going on at CEG on Thursday, when third-quarter earnings are announced.

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About Jay Hancock

Jay Hancock has been a financial columnist for The Baltimore Sun since 2001. He has also been The Baltimore Sun's diplomatic correspondent in Washington and its chief economics writer. Before moving to Baltimore in 1994 he worked for The Virginian-Pilot of Norfolk and The Daily Press of Newport News.

His columns appear Tuesdays and Sundays.

Follow @jayhancock1 on Twitter