Discussing Energy Economics on the Internet

A New World Order

Posted in Nuclear,UK,USA Federal by Cheryl Morgan on the September 23rd, 2008

Several hundred years ago the French helped the Americans throw off the yoke of British Imperialism. These days, however, Frenchmen are rather less welcome over the other side of the Atlantic than they are on the other side of the Channel. The Wall Street Journal reports that Constellation Energy has accepted a takeover bid of $26.50 per share from Warren Buffett’s MidAmerican Energy Holdings even though they had a rival bid from EdF worth $35 per share. Constellation cites confidence in Buffett’s legendary financial acumen, immediate access to funds, and ease of obtaining regulatory approval as the primary reasons for their seemingly unusual choice. (Knowledge Problem has more links.)

EdF, as we have been noting for some time, is keen to acquire nuclear generation assets elsewhere in the world, and it is the nuclear issue that the WSJ thinks was the stumbling block for Constellation. America’s nuclear generation in the hands of garlic-eating foreigners? No thank you. But French money is rather more popular in Britain. The Times reports that the board of British Energy has accepted a revised bid for their company from EdF. An announcement is expected this week to coincide with the Labour Party Conference, so that Gordon Brown can welcome his French friends with a great fanfare. Nelson, Wellington and Henry V are doubtless turning in their graves, and William the Conqueror will be having a good laugh at their expense.

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