CEG is reportedly nearing a deal with...

CEG is reportedly nearing a deal with French firm

There are 10 comments on the Baltimore Sun story from Dec 16, 2008, titled CEG is reportedly nearing a deal with French firm. In it, Baltimore Sun reports that:

Baltimore's Constellation Energy Group Inc. is nearing an agreement to sell to Electricite de France SA half of its nuclear-power business for $4.5 billion and terminate a planned takeover of the entire company ...

Join the discussion below, or Read more at Baltimore Sun.

T-bone

Ocean City, MD

#1 Dec 16, 2008
How much of that 4.5 billion is going to the State of Maryland and it's citizens? BGE built the plant in the early 70s for about 750 million dollars (that's about 4 billion in today's dollars). I bet nothing.
Rob

Severna Park, MD

#2 Dec 16, 2008
Hold on there T-Bone, w're not a socialist country yet. I know I shouldn't bite, but why would any of the $4.5 B go to the State of MD and it's not-shareholder citizens? The shareholders are the ne's who invested their money, which allowed Constellation to grow and they took a risk that Constellation would go bankrupt, which it almost did. The State of Md wasn't going to "bail out" Constellation if it went bankrupt. If you're not sharing in the downside risk, then you don't get to reap any of the upside reward!
Justin

New York, NY

#3 Dec 16, 2008
This is good for Constellation, good for the city of Baltimore, and good for the state of Maryland. It amazes me how people overlook the importance of keeping a fortune 500 company independent and in the city just because they still don't like what went on with the rates and the PSC. Can you not see how the state and city are making it impossible to do business here? Pretty soon there won't be a large company or the amount of jobs and corporate good will that go along with it left in Baltimore.
gbw

Glen Burnie, MD

#4 Dec 16, 2008
I posted earlier that buffet would make good money if ceg backed out. Shattuck should pay the termination fee because of his decision to go with buffet. This guy shattuck has lost money running ceg to line his pockets. When will we see in the papers of his firing for gross negligence in runnig ceg.
Bob

Baltimore, MD

#5 Dec 16, 2008
This is just another example of greedy businessmen fleecing America. With what BGE is charging for electricity there is no way CEG shouldn't be making money. Now, they are going to sell to a foreign company. I think that is ridiculous. Wake up citizens. The greedy businessmen are selling our country and we don't even realize it.
conservative

Westminster, MD

#6 Dec 16, 2008
buffet gets 733 million plus the billion he lent constellation. the schmocks who got constellation into this mess keep their jobs. and a lost cost producer of electricity in maryland is now half owned by the french.

i do not know who wins in this beside managment. certainly not stockholders or ratepayers.
Tough Talk

Baltimore, MD

#7 Dec 16, 2008
Good deal.
Kevin Clifford

Baltimore, MD

#8 Dec 16, 2008
This agreement is of paramount importance to CEG stocksholders, employees/retirees, and Maryland citizens. I'm a advocate of the EDF offer. However, I've read/heard some misinformation in the last few days. Although we will not know the specifics until the deal is consummated and approved by the regulators, and possibly the courts if Buffett's company sues for breach of contract, I'd like to offer some information to the media investigators.

NPR incorrectly reported last week that a sale of nuclear generation assests would leave CEG with only a "utility distribution company," BGE. Todays Sun article and Bloomberg report a sale of "half it's nuclear business." What does that mean?

My guess is that EDF would be interested in ALL of CEG's nuclear plants (in Maryland and New York). The sale of these nuclear generation assests will leave CEG as a strong generation company, in addition to BGE, because the company owns non-nuclear generating plants in several states, totaling in excess of 5,000 MW capacity.

The EDF deal should be able to infuse enough cash to payoff CEG's failed commodity trading businesses; allow a profitable generation and utility business; and re-tool any ambitions on commercial/industiral gas/electric commodity sales and services to apply better risk management and avoid the credit/futures markets.
T-bone

Ocean City, MD

#9 Dec 16, 2008
Rob wrote:
Hold on there T-Bone, w're not a socialist country yet. I know I shouldn't bite, but why would any of the $4.5 B go to the State of MD and it's not-shareholder citizens? The shareholders are the ne's who invested their money, which allowed Constellation to grow and they took a risk that Constellation would go bankrupt, which it almost did. The State of Md wasn't going to "bail out" Constellation if it went bankrupt. If you're not sharing in the downside risk, then you don't get to reap any of the upside reward!
The reason Constellation "grew" was simply that it was the monopoly power generation company in the State of Maryland for over fifteen years. It achieved this position as a result of the "cult of privatization" introduced by Ronald Reagan and the Republican Party over twenty five years ago. Constellation knew exactly what it was doing when it bought BGE fifteen years ago. It was becoming a monopoly. The company paid off local Maryland politicians who were eager to join the privatization gravy train. CEG has been cheating the people of the State of Maryland ever since by using their monopoly position. That is the history of Constellation Energy Group up until they became too greedy and began betting the company on the energy market. I'm just asking the people of Maryland to stop thinking we need private power generation companies and work toward a day when we have a public/private consortium that runs our utilities (water, sewer, gas and electric) and they are accountable to the public again and not stockholders.
Nora

AOL

#10 Dec 16, 2008
Kevin, who are you kidding? Yourself. This only benefits the crooks running Constellation. From Shattuck,down, they all should go to jail!

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