Entries tagged "Constellation"
The Federal Reserve Board was cheered on Wall Street Tuesday as it cut the federal funds rate to a range of zero to .25%, the first time the overnight bank lending rate was cut below 1%. The Dow Jones Industrial Average skyrocketed 359.61 points to close at 8,924.14 on Tuesday as the market applauded the Fed's attempt to loosen up tight lending markets. However, some have argued that this quick fix does not give the Fed any more breathing room to lower rates if and when the economy worsens. As the Dow rose, so did a handful of Deal Stocks....
We liked Steve Davidoff's DealBook post on the MidAmerican Energy Holdings Co.-Constellation Energy Group Inc. merger agreement. As one would expect given that Constellation was on the verge of bankruptcy when it agreed to sell, the agreement reads like one drafted by a buyer with no seller mark-ups. Constellation didn't have time to mark up. It announced the deal last Thursday, a day before it signed the agreement. That is desperation. But MidAmerican was also able to get such favorable terms because Baltimore-based Constellation is incorporated in Maryland, and Maryland law allows target company management to do almost anything...
Baltimore power producer and trader Constellation Energy Group Inc., which agreed to sell out to Berkshire Hathaway Inc., isn't the only one who has been burned on volatile oil and gas prices. The Wall Street Journal reported Wednesday that a commodity fund run by 80-year-old oil man-turned corporate raider-turned energy investor T. Boone Pickens is down 84% and a hedge fund that invests in energy stocks run by him is down 30%, both through August. That comes to $1 billion in losses, including $270 million in personal losses for Pickens. ...
As the price of crude oil vaulted $16.37 to close at $120.92 and investors nervously awaited details of the government's plan to scoop up $700 billion of the banks' potentially toxic mortgage-related debt, the broader market skidded with the Dow Jones Industrial Average falling 372.75 points to close at 11,015.89 on Monday, Sept. 22. Despite the market slide, some Deal Stocks escaped being sucked down the oil-driven vortex. ...
Constellation Brands Inc.'s quarterly earnings are up 6%, and its joint venture with Grupo Modelo SAB de CV will "remain intact," CEO Rob Sands said during a conference call. ...
