Is Shattuck trying to sell Constellation -- again?
Mayo Shattuck was an investment banker before he was an electricity executive. I always figured he would sell Constellation Energy, parent of Baltimore Gas & Electric, before he was through with it. In 2006 he was trying to seal a deal to sell Constellation to Florida-based FPL Group, but it petered out amid that year's brouhaha over BGE's 72 percent rate increase.
Now he may be at it again. There is been building speculation in recent weeks that Constellation, whose stock price had lagged since its near-bankruptcy during the 2008 financial crisis, would seek a deal with another big energy company. Several news outlets are reporting tonight that the company is close to an agreement with Chicago-based Exelon. This from Bloomberg:
Exelon Corp. (EXC) is near an agreement to buy Constellation Energy Group Inc. (CEG) in a stock deal that values the company at about $7.7 billion, according to a person with knowledge of the matter.
The offer values Constellation at more than $38.50 a share based on Exelon’s closing stock price today, said the person, who declined to be identified because the talks are private.
In the plan under discussion, Constellation Chief Executive Officer Mayo Shattuck would become chairman of the combined company, and Chris Crane, currently the president of Exelon, would become chief executive officer, succeeding Rowe, the person said. The talks started last year, the person said.
Constellation is by far the largest Baltimore-based company, an outgrowth of BGE, which was the nation's first natural-gas utility in the 1800s. Unclear what exactly this deal might mean for Constellation and its Baltimore workforce, but it's probably not good. However much of the company's employment is tied to BGE, the local utility, and can't be moved or downsized.
UPDATE: Here's a March 14 column: Stock price may push Shattuck to sell Constellation