French energy giant Electricite de France said Wednesday it would not make a counteroffer for Baltimore-based Constellation Energy, paving the way for completion of a merger with Warren Buffett’s Mid-American Energy Holdings Co. last month.
“After discussions with several potential American partners, EDF has determined that current conditions are not conducive to presenting a new offer for Constellation Energy Group,” EDF said in a statement.
EDF is Constellation’s largest shareholder, and upped its stake in the company earlier this year to 9.5 percent.
Constellation accepted a $4.7 billion, $26.50 a share buyout offer from MidAmerican last month, as the global credit crisis threatened its credit rating and energy trading division.
After the companies announced the merger, EDF said Constellation had spurned its higher, $35 a share offer. A number of shareholder lawsuits followed, alleging Constellation executives had low-balled the company’s value.
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