MidAmerican Merger with Constellation Energy Advances with Conclusion of 14-Day Due Diligence
Media Contacts:
MidAmerican Energy Holdings Company:
Sara J. Schillinger/Ann Thelen
515-242-4032/515-281-2785
Constellation Energy:
Robert L. Gould/Debra Larsson
410-470-7433
Investor Contacts (Constellation Energy):
Kevin Hadlock/Janet Mosher
410-470-3647
DES MOINES, Iowa and BALTIMORE – (Oct. 2, 2008) – MidAmerican Energy Holdings Company and Constellation Energy (NYSE: CEG) today announced that MidAmerican has completed its 14-day due diligence of Constellation Energy’s retail and wholesale businesses, including trading records, and the merger of the two companies continues to proceed as outlined in the Sept. 19, 2008, Agreement and Plan of Merger.
“Our 14-day due diligence was completed early, and we waived the related termination right under the merger agreement,” said Gregory E. Abel, president and chief executive officer of MidAmerican. “We are pleased to be moving forward with the transaction.”
“With MidAmerican’s affirmation of the stability and underlying strength of Constellation Energy and the recent infusion of $1 billion to increase our liquidity, we are now poised to successfully complete the merger approval process,” said Mayo A. Shattuck III, chairman, president and chief executive officer of Constellation Energy.
MidAmerican and Constellation Energy announced Sept. 19, 2008, the companies had reached a definitive merger agreement in which MidAmerican will purchase all of the outstanding shares of Constellation Energy for a cash consideration of approximately $4.7 billion, or $26.50 per share. The definitive agreement has been approved by both companies’ boards of directors and is subject to shareholder and customary federal and state regulatory approvals. The transaction is expected to close in nine to 12 months.
About Constellation Energy
Constellation Energy (www.constellation.com), a FORTUNE 125 company with 2007 revenues of $21 billion, is the nation’s largest competitive supplier of electricity to large commercial and industrial customers and the nation’s largest wholesale power seller. Constellation Energy also manages fuels and energy services on behalf of energy intensive industries and utilities. It owns a diversified fleet of 83 generating units located throughout the United States, totaling approximately 9,000 megawatts of generating capacity. The company delivers electricity and natural gas through Baltimore Gas and Electric Company (BGE), its regulated utility in Central Maryland.
About MidAmerican Energy Holdings
MidAmerican Energy Holdings Company, based in Des Moines, Iowa, is a global provider of energy services. Through its energy-related business platforms, MidAmerican provides electric and natural gas service to more than 6.9 million customers worldwide. These business platforms are Pacific Power, Rocky Mountain Power and PacifiCorp Energy, which comprise PacifiCorp; MidAmerican Energy Company; CE Electric UK; Northern Natural Gas Company; Kern River Gas Transmission Company; and CalEnergy. Information about MidAmerican is available at www.midamerican.com.
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