Billionaire Warren Buffett has pocketed $5 million in interest on a $1 billion investment in Constellation Energy Group Inc.
The Baltimore energy giant paid back Buffett’s MidAmerican Energy Holdings Co. Jan. 12 for the emergency loan, according to a U.S. Securities and Exchange Commission filing Wednesday.
MidAmerican invested $1 billion in Constellation Sept. 18 as part of its $4.7 billion bid for the energy company. But Constellation broke off the deal Dec. 17. That same day, Constellation (NYSE: CEG) agreed to sell about 50 percent of its nuclear energy business to Eléctricité de France International, its largest shareholder. That deal could close in six to nine months and is under review by federal regulators.
As part of its breakup with Buffett, Constellation agreed to pay $593 million in cash for termination fees and stocks and repay the $1 billion infusion by December 2009. MidAmerican also walked away with a 9.9 percent stake in Constellation.
EDF made a cash investment of $1 billion in Constellation Dec. 17 as part of its bid for nearly half of the nuclear business.
Constellation said in its filing its available liquidity as of Dec. 31, 2008 was $2.4 billion.
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