Constellation Energy shareholder believes company's liquidity is sufficient

By Lisa Kerner

Charlotte, N.C., Dec. 16 - Constellation Energy Group stockholder Andrew Shirley believes the company may have enough liquidity to continue as a stand-alone company.

Shirley said that as a stand-alone company, Constellation Energy's stock is worth $40 to $65 per share, more than the $26.50 per share offered by MidAmerican Energy Holdings Co.

In September, MidAmerican agreed to acquire Constellation Energy, a Baltimore energy products provider, for approximately $4.7 billion.

Shirley, who owns 34,000 shares, made his comments in a Dec. 14 letter to Constellation Energy's board of directors.

In the letter, Shirley asked the board to provide a comprehensive liquidity projection to stockholders prior to the special meeting on Dec. 23.

Based on company filings, Shirley believes Constellation Energy "has sufficient liquidity to withstand both a merger termination and a credit rating downgrade," the letter said.

Constellation Energy also began discussions with Électricité de France SA regarding EDF's Dec. 2 unsolicited proposal. However, Constellation Energy's board of directors continues to recommend that the company's shareholders vote in favor of the merger with MidAmerican.

It was previously reported that EDF, a Paris-based integrated energy company, wants to buy a 50% ownership interest in Constellation Energy's nuclear generation and operation business, excluding Constellation Energy's existing interest in the UniStar joint venture, for $4.5 billion.

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