Constellation Energy Group Inc. offered to sell its stake in a U.S. nuclear-power joint venture to Electricite de France SA, while refusing to forgo an option to sell EDF its old power plants.
Constellation said it would sell 50 percent of UniStar Nuclear Energy to Paris-based EDF for $1 plus $117 million in cost reimbursement, according to a letter today from Chief Operating Officer Michael Wallace to EDF Executive Vice President Thomas Piquemal.
EDF, Europe's largest power producer, already owns half of UniStar and offered to buy the remaining half on Oct. 13 for "fair market value" if Constellation agreed not to exercise an option to sell 12 of its non-nuclear plants to EDF for $2 billion. The option, which expires in December, was put in place in 2008 when the companies were fighting off a bid by Warren Buffett's Berkshire Hathaway Inc. to buy Constellation.
Constellation, based in Baltimore, said in the letter the option to sell the coal, hydroelectric and natural-gas plants to EDF should be handled separately.
Constellation fell 8 cents to $32.72 at 4 p.m. in New York Stock Exchange composite trading. EDF shares fell 19 cents to 30.80 euros at 5:37 p.m. in Paris.
