Electricite de France is close to an agreement to buy half the nuclear power business of
for $4.5 billion, trumping a takeover bid by Warren Buffett's MidAmerican Energy,
Approval by Constellation's board is contingent on waivers of bank covenants and may be announced as early as this week,
reports, citing a person familiar with the situation.
Constellation accepted MidAmerican's $4.7 billion offer in September to stave off a credit downgrade that it said may have led to bankruptcy. EdF earlier this month offered to take a 50% stake in Constellation's nuclear operations through a joint venture. Constellation agreed on Dec. 8 to open talks with EdF.
EdF, which owns 9.5% of Constellation, said its offer amounts to around $52 a share and that the price represents a 96% premium to the takeover proposal by MidAmerican Energy, which is offering $26.50 a share.
This article was written by a staff member of TheStreet.com.