EDF vs. Fairness Opinion
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EDF valuation of CGI
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Annex A
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Implied Valuation
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Valuation of Constellation’s business segments:$ billions Management Fairness
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HighLow
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Valuation of non−nuclear generation assets 5.7
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Valuation of 50% of existing nuclear generation assets4.3
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Valuation of BGE 4.2 4.2
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Valuation of Global Commodities and Customer Supply 0.3-2-2
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Valuation of 50% interest in Unistar JV 0.3
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Corporate overhead-0.1
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Total firm value before net debt and transaction adjustments (A) 14.71312
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$6.7 billion of net debt at September 30, 2008 reported by Constellation (including $1 billion MidAmerican senior note-6.9
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Payment of $175 million MidAmerican termination fee Payment of $420 million to MidAmerican for shares in excess of 10%, for which it may not have received regulatory approvals by the time the MidAmerican merger agreement is terminated -0.6
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Receipt of $4.5 billion of gross sale proceeds from EDFI Net proceeds of $3.2 billion, assuming a capital gains tax rate of 38.5% and an estimated tax basis of 25% of sales value3.2
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Total net debt and transaction adjustments (B) -4.3-6-6
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Implied total equity value (C) = (A) +(B) 10.454
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mplied value per Constellation common stock ($/share) $52$28$23
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Assumes 180 million diluted shares outstanding plus 19.9 million shares issued to MidAmerican upon conversion of the preferred stock
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