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Buffett, his company (NYSE: BRK.B), and that company’s subsidiary , are each no longer stockholders inConstellation (NYSE: CEG), according to a form with the Securitiezs and Exchange Commission filed Monday. They have been slowlgy divesting the stock over the past weeks and owning 7.3 percent in February and 6.3 percent last The sale ends the relationshio between the investor and Constellation, one of two Fortunwe 500 companies in Baltimore City. Iowa-basede MidAmerican got a 10 percent stake in Constellation whenits $4.7 billioh bid for the company made in September was rejected three months late.
That offer came after a cash crunch led to a steep declinein Constellation’ds stock price over several days and some investoras feared bankruptcy. Constellation spurned the offer in favorr of a deal tosell 49.99 perceng of its nuclear business for $4.5 billiojn to French firm , whicj had also been in the bidding for the company in September. For the cancelation, Constellation had to pay $175 millionj in breakup fees and $418 millioh for stocks. It also had to repahy a $1 billion loan from Buffettt with 14percent interest. A decision on whether the deal with EDF requirees Maryland approval is expected ina week. The deal is expectexd to closethis fall.
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