MidAmerican Energy Holdings Company Reaches Definitive Agreement to Acquire Constellation Energy
September 19 2008 - 5:25PM
Business Wire
MidAmerican Energy Holdings Company and Constellation Energy (NYSE:
CEG) today announced the companies have reached a definitive merger
agreement in which MidAmerican will purchase all of the outstanding
shares of Constellation Energy for cash consideration of
approximately $4.7 billion, or $26.50 per share. As agreed under
the terms of the tentative agreement announced on Sept. 18,
Constellation Energy is issuing to MidAmerican $1 billion of
preferred equity yielding 8 percent upon signing the definitive
agreement. The definitive agreement, which has been approved by
both companies� Boards of Directors, is subject to shareholder and
customary federal and state regulatory approvals. The transaction
is expected to close within nine months. The agreement expires nine
months after its execution but may be extended by either company
for up to three months. �Having reached a definitive agreement with
Constellation Energy, we look forward to gaining the necessary
approvals to bring together our companies to establish a
world-class organization of people and an industry-leading
collection of energy assets,� said Gregory E. Abel, president and
chief executive officer of MidAmerican Energy Holdings Company. �We
believe Constellation Energy has a strong business plan and are
committed to helping the Company reach its long-term goals, while
also maximizing the benefits of our complementary capabilities.�
�We are very pleased to have reached this definitive agreement with
MidAmerican as we strongly believe this transaction is in the best
long-term interest of our stakeholders,� said Mayo A. Shattuck III,
chairman, president and chief executive officer for Constellation
Energy. �The significant industry expertise and financial stability
of MidAmerican and Berkshire Hathaway will allow Constellation
Energy to continue our strong heritage as a first-choice energy
solution provider and continue to build our business for the next
200 years.� About Constellation Energy Constellation Energy
(http://www.constellation.com), a FORTUNE 125 company with 2007
revenues of $21 billion, is the nation�s largest competitive
supplier of electricity to large commercial and industrial
customers and the nation�s largest wholesale power seller.
Constellation Energy also manages fuels and energy services on
behalf of energy intensive industries and utilities. It owns a
diversified fleet of 83 generating units located throughout the
United States, totaling approximately 9,000 megawatts of generating
capacity. The company delivers electricity and natural gas through
the Baltimore Gas and Electric Company (BGE), its regulated utility
in Central Maryland. About MidAmerican Energy Holdings MidAmerican
Energy Holdings Company, based in Des Moines, Iowa, is a global
provider of energy services. Through its energy-related business
platforms, MidAmerican provides electric and natural gas service to
more than 6.9 million customers worldwide. These business platforms
are Pacific Power, Rocky Mountain Power and PacifiCorp Energy,
which comprise PacifiCorp; MidAmerican Energy Company; CE Electric
UK; Northern Natural Gas Company; Kern River Gas Transmission
Company; and CalEnergy. Information about MidAmerican is available
at www.midamerican.com. Forward-Looking Statements and Additional
Information This press release contains forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995, including, but not limited to, statements relating to the
proposed transaction between Constellation Energy and MidAmerican
Energy Holdings Company and the expected timing and completion of
the transaction. Words such as �anticipate,� �believe,� �plan,�
�estimate,� �expect,� �intend,� �will,� �should,� �may,� and other
similar expressions are intended to identify forward looking
statements. Such statements are based upon the current beliefs and
expectations of our management and involve a number of significant
risks and uncertainties, many of which are difficult to predict and
generally beyond the control of Constellation Energy and
MidAmerican. Actual results may differ materially from the results
anticipated in these forward-looking statements. The following
factors, among others, could cause or contribute to such material
differences: the ability to obtain the approval of the transaction
by Constellation Energy�s shareholders; the ability to obtain
governmental approvals of the transaction or to satisfy other
conditions to the transaction on the terms and expected timeframe
or at all; transaction costs; economic conditions; and the effects
of disruption from the transaction making it more difficult to
maintain relationships with employees, customers, other business
partners or government entities. Additional factors that could
cause our results to differ materially from those described in the
forward-looking statements can be found in the 2007 Annual Report
on Form 10-K for the year ended December 31, 2007 filed with the
Securities and Exchange Commission and in the proxy statement
Constellation Energy intends to file with the Securities and
Exchange Commission and mail to its shareholders with respect to
the proposed transaction, each of which are or will be available at
the Securities and Exchange Commission�s Web site
(http://www.sec.gov) at no charge. This communication is being made
in respect of the proposed merger transaction involving
Constellation Energy and MidAmerican Energy Holdings Company. In
connection with the proposed transaction, Constellation Energy will
file with the Securities and Exchange Commission a proxy statement
and will mail the proxy statement to its shareholders. Shareholders
are encouraged to read the proxy statement regarding the proposed
transaction when it becomes available because it will contain
important information. Shareholders will be able to obtain a free
copy of the proxy statement, as well as other filings made by
Constellation Energy regarding Constellation Energy, MidAmerican
Energy Holdings Company and the proposed transaction, without
charge, at the Securities and Exchange Commission�s Internet site
(http://www.sec.gov). These materials can also be obtained, when
available, without charge, by directing a request to Constellation
Energy per the investor relations contact information below.
Constellation Energy, MidAmerican Energy Holdings Company and their
respective directors and executive officers and other persons may
be deemed to be participants in the solicitation of proxies in
respect of the proposed transaction. Information regarding
Constellation Energy�s directors and executive officers is
available in Constellation Energy�s notice of annual meeting and
proxy statement for its most recent annual meeting and
Constellation Energy�s Annual Report on Form 10-K for the year
ended December 31, 2007, which were filed with the Securities and
Exchange Commission on February 27, 2008 and April 29, 2008,
respectively. Other information regarding the participants in the
solicitation and a description of their direct and indirect
interests, by security holdings or otherwise, will be contained in
the proxy statement and other relevant materials to be filed with
the Securities and Exchange Commission. This communication shall
not constitute an offer to sell or the solicitation of an offer to
buy any securities, nor shall there be any sale of securities in
any jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. No offering of securities
shall be made except by means of a prospectus meeting the
requirements of Section 10 of the Securities Act of 1933, as
amended.
Constellation Energy (NYSE:CEG)
Historical Stock Chart
From Jun 2024 to Jul 2024
Constellation Energy (NYSE:CEG)
Historical Stock Chart
From Jul 2023 to Jul 2024