Sale to MidAmerican is on track, CEG says

September 30, 2008

Constellation Energy Group affirmed yesterday that its sale to Warren Buffett's MidAmerican Energy Holdings Co. is on track. MidAmerican Chief Executive Gregory Abel said the company expects to complete its due diligence within the 14-day review period, which expires Friday. Abel said "based on information reviewed to date, we have not identified any issues." The update from the two companies was released after SparkSpread.com's report - later retracted - said Constellation may file for bankruptcy, according to Bloomberg News. Constellation agreed to be sold to MidAmerican this month for $4.7 billion, or $26.50 a share. The deal needs shareholder and regulatory approval. Constellation shares lost $2.25, or 9 percent, to close at $23 yesterday amid broader market sell-off after Congress rejected the bailout plan.

Hanah Cho