EdF proposes new offer to U.S. Constellation

The state-controlled power company, which pulled out of a full takeover bid for Constellation in October, said it had proposed to Constellation's board to take a 50-percent stake in the nuclear operations through a joint venture.

EdF's new approach of a proposed joint venture with the Baltimore- based utility, is designed to ensure that EdF, which owns 9.5 percent of Constellation, can operate plants in the U.S. and avoid possible opposition to foreign ownership of nuclear facilities.

“The offer is aimed at consolidating our role in developing new nuclear in the U.S.,” EdF Chief Executive Officer Pierre Gadonneix said in an interview in Paris. “It would bring long-term resources to Constellation,” he said, adding it was “far superior” to MidAmerican’s bid.

EdF said the proposal “is not subject to a financing condition” and approval from Constellation’s stockholders is not required.

EdF said the offer amounts to around $52 per share and that the price represents a 96-percent premium to a rival takeover proposal for Constellation by Warren Buffett's MidAmerican Energy Holdings Co., which is offering $26.50 per share.

EdF said the offer includes a $1 billion "upfront" cash infusion in Constellation, and an option to sell up to $2 billion of "non-nuclear generation assets" to the French company in a deal that could close in six to nine months.

Maryland-based Constellation said Tuesday it would likely file for bankruptcy protection if it failed to secure an immediate $1 billion infusion from MidAmerican, a unit of Buffett's Berkshire Hathaway Inc.