Constellation Energy CEG accepts the French connection offer

December 17, 11:31 AMBaltimore Financial ExaminerTom Taylor, CPA/PFS

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Constellation Energy (CEG), parent of Baltimore Gas and Electric (BGE) has agreed to enter into a definitive investment agreement with EDF Development Inc, the French energy conglomerate.  EDF has agreed to acquire 49.99% of CEG's nuclear generation and operation business for $4.5 billion.  In a separate announcement, CEG and Mid-American jointly agreed to terminate their prior merger agreement.

EDF has also agreed to inject $1 billion into CEG immediately to provide liquidity.

Sounds like good news on this front, however you'd never know it by the stock price today.  This is fresh news and the stock market is digesting what exactly this means to the company and the stockholders.  CEG's stock is down $0.98 to $27.76 as of the writing of this note.

For those investors interested there is a conference call scheduled today at 12 noon (eastern time) to discuss the agreement.  Details are at the bottom of the press release or you can go the investor relations section of Constellation's website at www.constellation.com.

See these press releases for more details...

Constellation Energy and EDF enter into definitive investment agreement

Constellation Energy and Mid-American Energy jointly terminate merger agreement

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Tom Taylor, CPA is a fee-only Financial Planner and Certified Public Accountant and can be contacted at Thoma Capital Management in Towson, MD.  He is a member of NAPFA and the MACPA.