Buffett's MidAmerican Energy rescues Constellation

DES MOINES, Iowa (AP) -- Warren Buffett's Berkshire Hathaway holding company is on the move.

Berkshire's MidAmerican Energy Holdings, a natural gas and electric company, says it will buy Baltimore-based Constellation Energy Group for 4.7 billion dollars in a cash-and-stock deal.

Iowa-based MidAmerican is paying $26.50 a share for the utility.

The deal was unanimously approved by both companies' boards and is expected to close within nine months, but still needs approval of shareholders and regulators.

Buffett's rescue comes amid turbulent times for Constellation. Concerns about is liquidity have sent the stock down nearly 60 percent this week.

The famed investor had reportedly been in talks with American International Group before the government bailed out the insurer.

(Copyright 2008 by The Associated Press. All Rights Reserved.)


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