EDF Won't Make Offer for Nuke-Builder Constellation Energy

October 15, 2008

Dow Jones & Company, Inc.

French state-controlled electricity company Electricite de France SA
(1024251.FR) said Wednesday it isn't launching a new offer for Constellation
Energy Group Inc. (CEG).

"Given the current state of financial markets and in particular the
difficult credit market for corporates, and after discussions with several
potential American partners, EDF has determined that current conditions are
not conducive to presenting a new offer for Constellation Energy Group," EDF
said in a statement.

Earlier in October, EDF said it was studying with private equity firm
Kohlberg Kravis Roberts & Co. its options regarding Constellation, in which
EDF holds a 9.5% stake.

EDF's interest came after Berkshire Hathaway's (BRKA BRKB) MidAmerican
Energy Holding Co. reached a deal to buy Constellation for $26.50 a share,
or $4.7 billion. Buffett swept in after concerns over Constellation's
liquidity knocked off more than half the company's market value.

Constellation shares were recently down $2.31, or 9%, at $23.31.

An EDF bid was viewed at this point as highly unlikely, said Les Levy,
an arbitrage analyst at ICAP Securities. The spread between Constellation's
current share price and MidAmerican's buyout price likely widened because of
the overall drop in stocks Wednesday.

Even if it had made a bid, EDF was expected to face difficulties
winning the federal and state approvals for an acquisition of Constellation,
which owns nuclear power plants.

EDF said Wednesday it continues to look at options to build at least
four new so-called European Pressurized Reactors in the U.S. with American

Levy said a vote by Constellation shareholders later this year to be a
crucial step to ensure the deal closes.

Constellation owns a large fleet of power plants in the eastern U.S.,
Baltimore Gas & Electric Co. and a commodities-trading business.