Constellation rises $3 on French offer
Constellation Energy is up to $28.50 as I write, $2 more than Warren Buffett's buyout price of $26.50. The market thinks this French offer is real. Electricite de France is offering everything shareholders, Constellation management and Baltimore city fathers/mothers might want: continued independence for Constellation, maintaining Baltimore headquarters, cash to stave off bankruptcy. Questions: Can EDF come up with the dough? Can it clear all the regulatory obstacles? Will shareholders take the offer seriously after examining it?
The ball is in Buffett's court. Will he come back with a higher offer?
Comments
To All Who Are Concerned About the CEG Give-Away:
I have been a shareholder of BGE/now CEG for nearly 30 years. I am currently living in San Antonio, TX and so don't hear/read about how shareholders in the Baltimore area or the regulatory bodies think/feel about this proposed merger.
But I think it's utterly deplorable that the CEG board of directors is trying to force a vote on this issue on DECEMBER 23, while many shareholders may be traveling or thinking about the holidays. I don't care if the proposed contract requires this action so soon--it sounds to me like a hard ball Buffet tactic.
Let me state for the record to the CEG Board of Directors and to the other CEG shareholders that I plan to vote "No" to the merger and take NOTHING on the value of my stock certificates rather than let them be given away for practically nothing. It's time for us shareholders to play some hard ball of our own.
Posted by: E. Gayle Schneider, Ph.D. | December 3, 2008 2:54 PM
I read the proxy document and nowhere did it state that the CEG Board of Directors had received or read the Merger Document before their approval but they now want us stockholders to vote Yes.
Posted by: krizmos | December 3, 2008 10:54 PM
@ krizmos
Yes, the board has received AND approved the merger agreement:
"Constellation Energy’s board of directors has approved and declared advisable the merger agreement, the merger and the other transactions contemplated by the merger agreement, determined that the merger and the other transactions contemplated by the merger agreement are fair to and in the best interests of Constellation Energy and its shareholders and resolved to recommend that Constellation Energy’s shareholders vote in favor of the approval of the merger."
Posted by: Mainland | December 4, 2008 2:01 PM
I've had Constellation stock for about 15 years and am deeply disappointed in the way the board and the firm's top management have handled the financial end of the operation. A recent analysis of the financial health of the company indicates it has a "standalone" stock value of $45 to $60 per share, and that it will actually improve it's stability thru 2009, so I will be voting "NO" to any merger, I hope other shareholders do the same, and demand that the board replace the firm's entire top management.
Posted by: Evan Rosenberg | December 16, 2008 8:05 PM