Constellation Energy announced that it has received a proposal from Électricite de France (EDF). If the proposal is accepted, EDF would buy a 50% share in Constellation for $4.5 billion. Constellation’s Board of Directors will review the proposal, but at this time they are still recommending that shareholders vote for the planned merger with MidAmerican Energy Holdings Company.

Here’s an overview of the proposal from EDF:

• EDF would purchase a 50% ownership interest in the nuclear generation and operation business of Constellation Energy (excluding Constellation Energy’s existing interest in the UniStar joint venture) for $4.5 billion, subject to certain adjustments;
• EDF would make an immediate $1 billion cash investment in Constellation Energy in the form of nonconvertible cumulative preferred stock, which subsequently would be credited against the $4.5 billion purchase price (with EDF surrendering the preferred stock to Constellation Energy as partial payment); and
• EDF would provide Constellation Energy with additional liquidity by entering into an asset put option pursuant to which Constellation Energy could, at its option, prior to EDF’s acquisition of the 50% interest in Constellation Energy’s nuclear generation and operation business, sell to EDF non-nuclear generation assets having an aggregate value of up to $2 billion.