Commenting on the disintegrating relationship between Constellation Energy (NYSE:CEG) and its largest shareholder, Electricite de France SA, Citigroup (NYSE:C) analyst Sofia Savvantidou said in a note to clients the "preferred option" from Citi's viewpoint would be "A clean exit out of the U.S."
EDF has said as the situation has worsened that they wouldn't be adverse to the sale of Constellation. They had opposed it over the last several months when they interest was shown over a possible sale.
The differences center primarily around Constellations decision to drop out of negotiations over a $7.5 billion loan guarantee related to their joint venture in a Maryland reactor. They felt the resultant risk was too high.
Another point of tension was a battle over a $2 billion put option on non-nuclear plants.
While open to a sale, EDF won't pursue one. They would rather see new management put in place.
EDF holds a board seat of Constellation and has about an 8.4 percent stake in the company.
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