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EDF Offers to Buy Constellation Stake of UniStar if Put Option Not Exercised
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October 14, 2010
EDF has offered to buy Constellation Energy's 50% share
of nuclear venture UniStar at "fair market value," but only if Constellation does
not exercise a put option that would compel EDF to buy a dozen plants from Constellation
for $2 billion. Most of the plants are coal-
EDF would then pursue development of Calvert Cliffs 3 on its own until finding another U.S. partner. Alternatively, EDF offered to assume 100% of development risk for Calvert Cliffs 3 until construction commences, again, contingent on Constellation not exercising the put option.
In a statement, Constellation said that it, "looks forward to discussing the details," of the potential restructuring of the UniStar partnership
"With respect to the separate matter of the put option, we will hold EDF to its stated commitment to stand fully behind its contractual obligations," Constellation said.
In its letter to Constellation, EDF said that the put option is not exercisable under present circumstances. EDF further said that it would "vigorously and confidently resist" the exercise of the put option.
“Litigation that would inevitably result from Constellation [sic] attempt to exercise the put would cause, at a minimum, serious and highly disruptive delay for CC3,” EDF said.
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