MidAmerican Energy deal is off. Shareholder meeting next week is cancelled. Constellation owes Buffett $593 million in cash and 10 percent of Constellation stock plus the $1 billion Buffett fronted Constellation in September, at 14 percent interest.

BALTIMORE & DES MOINES, Iowa--(BUSINESS WIRE)--Constellation Energy (NYSE: CEG - News) and MidAmerican Energy Holdings Company today announced they have jointly reached agreement to terminate their Sept. 19, 2008, merger agreement, and as a result, the previously announced Dec. 23, 2008, shareholder meeting to vote on the MidAmerican merger has been canceled.

On Sept. 22, 2008, MidAmerican provided $1 billion of needed capital to Constellation Energy to assist them in continuing their business operations during unprecedented times of global financial stress.

Under the provisions of the termination agreement MidAmerican will receive a $175 million termination fee. In addition, the preferred shares issued to MEHC Investment, Inc., a wholly owned subsidiary of MidAmerican, will convert, and MEHC Investment, Inc. will receive a $1 billion note at 14 percent interest, maturing Dec. 31, 2009; approximately 20 million shares of Constellation Energy common stock, representing 9.99 percent of outstanding shares; and approximately $418 million in cash. Additionally, the $350 million liquidity resource will terminate.

“We greatly appreciate the professionalism, good faith and cooperation MidAmerican’s management and board have shown since we first initiated discussions in September,” said Mayo A. Shattuck III, chairman, president and chief executive officer of Constellation Energy. “Based on a careful process to examine all alternatives available to our shareholders and other stakeholders, we believe that termination of the merger agreement is in the best interest of all parties.”

“We were pleased to have been able to quickly provide a significant amount of capital that was critical to Constellation Energy as they went through unprecedented financial times. We appreciate the relationships we have built with the Constellation Energy team and wish them success as they pursue an alternative transaction,” said Gregory E. Abel, president and chief executive officer of MidAmerican.

The companies will make appropriate filings to notify regulatory agencies that the proposed transaction has been terminated.