Electricitie de France's management is "mixed" on continuing its challenge to Warren Buffett's "bargain buy" of Constellation Energy, now that the Baltimore company's board has recommended a sale to Berkshire Hathaway subsidiary MidAmerican Energy.
That's according to Dow Jones this morning, although the wire service quotes a source as saying EDF's bid is "still valid." According to that source, "In the end, it'll be up to (Constellation) shareholders to decide. EDF hopes they'll opt for the best price."
(Some shareholders suits have already been filed against Constellation challenging the deal's price.)
EDF has revealed that last week it teamed with the private equity firms Kohlberg Kravis Roberts and TPG Capital to make a bid of $35 a share for Constellation. That's $8.50 more than the $26.50 Constellation agreed to in its quickly-arranged deal with MidAmerican.
EDF already owns almost 10 percent of Constellation and is a joint venture partner in the construction of four new nuclear power plants.
Both MidAmerican and Constellation are offering an immediate injection of $1 billion for Constellation, which has seen its stock badly roughed up by the current credit crisis.
But in a conference call, Constellation Chairman & CEO Mayo Shattuck called the MidAmerican deal "the best overall solution for all our stakeholders."