EdF drops bid for Constellation
16 October 2008
Electricité de France (EdF) announced that it will not make an improved bid for US utility Constellation Energy. EdF had recently increased its stake in Constellation to 9.51%, sparking rumours that it would launch a takeover bid. However, MidAmerican Energy made a surprise $4.9 billion cash offer for Constellation in mid-September. EdF then submitted a rival bid. In a statement EdF says: "Given the current state of financial markets and in particular the difficult credit market for corporates, and after discussions with several potential American partners, EdF has determined that current conditions are not conducive to presenting a new offer for Constellation." Constellation managers have remained committed to MidAmerican's offer. EdF and Constellation had formed the UniStar initiative to deploy Areva EPR reactors in North America. EdF confirmed "its objective of developing at least four EPRs in the United States in partnership with one or several American players and continues to review closely all possible options."