CEG/MAE/EDF

All the news:

1.  CEG is leaning toward the EDF offer.

2.  MEC said they won't make another bid.

3.  Options expire Friday the 19th.

4.  The Meeting is Tuesday, Dec 23.

I tend to think that Buffett walks on this one.  The CEG board needs to make a solid deal with EDF and make it quickly.

What to do?  The company should be worth $35/share, minimum,  after the breakup costs.  However, the Buffett offer of $26.50 will no longer provide a floor.  There will be no bidding war.  Among other reasons, they really aren't competing offers.  Buffett wants to buy the company and considers it a "bolt on" acquisition for MEC.  He isn't interested in investing a lot of capital in Nuclear energy.  EDF only cares about Nuclear Power and doesn't seem to be interested in owning a utility.  

Management wants to keep their jobs.  

No one else has the capital and interest to make another bid for the entire company.