Constellation mulls new bid; Cowen rejects $7 a share offer; Foundry to pay dividend if merger passes

By Cristal Cody

New York, Dec. 8 - Constellation Energy Group Inc. sent hearts fluttering Monday when it said it will begin immediate discussions with Electricite de France SA, which made a rival offer that could best MidAmerican Energy Holdings Co.'s takeover plans.

In other deals, Cowen Group Inc. rejected a $7 per share unsolicited acquisition proposal from Rodman & Renshaw Capital Group Inc., but the market thinks a combined company has value.

Also on Monday, Foundry Networks Inc. said it will pay a special dividend if it can sell its $50 million auction-rate portfolio and if shareholders approve the merger with Brocade Communications Systems Inc. on Dec.17.

Shares of Constellation advanced 3.87% to close at $28.15 Monday on the news it will consider the French utility's offer of $4.5 billion for 50% of Constellation's nuclear assets.

The offer made last week also gives Constellation the option to sell Electricite de France up to $2 billion more of its non-nuclear assets.

MidAmerican, a unit of Warren Buffet's Berkshire Hathaway Inc., agreed in September to pay $4.7 billion, or $26.50 a share, for the whole company.

Shareholders will vote on MidAmerican's offer on Dec. 23.

Constellation said in a statement Monday that the decision to review the new offer was made following legal and financial scrutiny of its definitive merger agreement with MidAmerican.

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