Constellation Energy and MidAmerican terminate merger agreement
Under the provisions of the termination agreement, MidAmerican will receive a $175 million termination fee. In addition, the preferred shares issued to MEHC Investment, a wholly owned subsidiary of MidAmerican, will convert, and MEHC Investment will receive a $1 billion note at 14% interest, maturing December 31, 2009; approximately 20 million shares of Constellation Energy common stock, representing 9.99% of outstanding shares; and approximately $418 million in cash. Additionally, the $350 million liquidity resource will terminate. The companies will make appropriate filings to notify regulatory agencies that the proposed transaction has been terminated. Gregory Abel, president and CEO of MidAmerican, said: "We were pleased to have been able to quickly provide a significant amount of capital that was critical to Constellation Energy as they went through unprecedented financial times. We appreciate the relationships we have built with the Constellation Energy team and wish them success as they pursue an alternative transaction."