A shareholder vote on Constellation Energy’s $4.7 billion merger deal with MidAmerican Energy Holdings Co. has been scheduled for Dec. 23, the company said today.
In a definitive proxy statement filed with the Securities and Exchange Commission, the company said a special meeting will be held at 8 a.m. on Dec. 23 at Constellation headquarters “to consider and vote on a proposal to approve the merger” of the two companies.
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Constellation was forced to accept a $26.50 a share offer from MidAmerican, controlled by super investor Warren Buffett’s Berkshire Hathaway, in mid-September after its stock price tumbled on concerns over the liquidity of its trading operation.
But several shareholders filed suit when Constellation’s largest investor, French energy giant Electricite de France, said it had been prepared to offer $35 a share for the company. EDF said a short time later that it would not renew its bid for the Baltimore-based energy company.
In addition to the shareholder vote, the deal will require approval from several U.S. and local regulators, including the Federal Energy Regulatory Commission and the Maryland Public Service Commission. The PSC has scheduled hearings on the merger for February, and expects to make a decision by mid-April.
“The board of directors believes the $26.50 per share offer from MidAmerican is the best alternative for shareholders, and as a result, strongly recommends that shareholders vote in favor of this transaction,” Mayo Shattuck, Constellation chairman, president and CEO said in a statement. “The continued deterioration in global credit and commodity markets leads us to conclude that combining with a well-capitalized strategic partner like MidAmerican is the best outcome for Constellation Energy and its shareholders.”
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