EDF's offer appears to have a shot

Full story: Baltimore Sun 10
Since the state-owned French electricity giant pitched the deal last week, investors have bid Constellation stock as high as $29. That's a bet that a rival proposal from Warren Buffett for $26.50 won't go ... Full Story
conservative

Mount Airy, MD

#1 Dec 10, 2008
so frogs want half of calvert cliff. if it goes through constellation owes buffet $500 million in cash, plus the one billion (in a year) that he lent constellation (plus the 14% interest). and 10% percent of the company. almost $700 million cash. little happens to the stock price and a foreign firm owns half of a low cost producer of electricity. constellation gets the 4.5 billion. the same schmucks who got constellation into this miess (mayo) keeps on running the store. glad i sold my bge stock long ago.
skall

Romans-sur-isère, France

#2 Dec 10, 2008
EDF is also the biggest nuclear-plant operator in the world !
NuclearJimmy

Gate City, VA

#3 Dec 10, 2008
I am not confident that foreign ownership of U.S. nuclear power plants would be allowed by the current President or President-elect. Here’s why:

Section 721 of the Defense Production Act of 1950, as amended by the Foreign Investment and National Security Act of 2007 (FINSA), requires the Committee on Foreign Investment in the United States (CFIUS) to review transactions which could result in control of a U.S. business by a foreign person “to determine the effects on the transaction[s] on the national security of the United States.”

The changes made by FINSA added an illustrative list of factors for consideration by CFIUS and the President in determining whether a covered transaction poses a national security risk. One such factor that was added is the potential national security-related effects of the transaction on U.S. critical infrastructure, including [physical critical infrastructure such as] major energy assets.

The WSJ reports that “by tapping General (Ret.) James Jones as his national security adviser, President-elect Obama is indicating that the great energy debate will take place at the epicenter of U.S. national security.” General (Ret.) Jones, was been quoted in the article as saying,“energy is a national security issue, and it is an international security issue of the highest order.”

With a potential required review by CFIUS, the November 15, 2008 update to CFUIS regulations to implement FINSA, and the statements by General Jones above, I conclude it would be difficult for foreign ownership of U.S. energy assets. We all remember the firestorm when the United Arab Emirates-owned company Dubai Ports World announced the purchase of a company that ran U.S. ports. The results were that Dubai Ports World eventually sold off its U.S. operations to an American company.
Justin

Jersey City, NJ

#4 Dec 10, 2008
NuclearJimmy wrote:
I am not confident that foreign ownership of U.S. nuclear power plants would be allowed by the current President or President-elect.
The EDF deal would be a joint venture, not sole ownership. It would also likely be favored by the incoming administration because Buffet has not been big on increasing the number of reactors it owns. EDF is mainly seeking to do this deal to create/maintain the market for its next generation of reactors. CEG was a big part of that market before the credit crisis and EDF sees midamerican as less likely customer.
Paul from Perry Hall

Baltimore, MD

#5 Dec 10, 2008
conservative -- glad you're out of our company. please keep it that way. Thanks.

Nuclear Jimmy -- EDF is seeking a 50% ownership stake in the nuclear plants, which is different than ownership. Also, EDF and Constellation Energy are already partners in Unistar, which is a joint venture seeking to expand the role of nuclear energy in the US.
Questionauthorit y

Baltimore, MD

#6 Dec 10, 2008
The situation seems to become more complicated as time goes on. It's difficult for employees and customers to sort out what is good for us and what is not. I am sad that 800 employees have to be sacrificed in this mess. God bless them.
exbge

Bel Air, MD

#7 Dec 10, 2008
EDF good deal for Maryland...good deal for shareholders...good deal for Buffet...good deal for employees and yes, sadly, good deal for Mayo.
Tough Talk

Baltimore, MD

#8 Dec 10, 2008
Bring on EDF.
Dana Barfield

United States

#9 Dec 11, 2008
1. Buffett will not alter his bid.
2. He offered assistance at a time no one else could or would.
3. If management goes back on their word then he doesn't want to work with them anyway because they can't be trusted.
4. Good luck with the French.
smk arizona

Avondale, AZ

#10 Dec 11, 2008
Just show me the money!!!

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