Wednesday, May 31, 2006

Is FPL-Constellation Off?

Constellation Energy Group Inc. (CEG.N: Quote, Profile, Research) on Wednesday said it stopped merger integration planning with fellow utility FPL Group Inc. (FPL.N: Quote, Profile, Research) because of uncertainty about whether Maryland regulators would approve the deal.

Although the merger approval process continues, Constellation said that "in this uncertain climate" it made more sense to focus on day-to-day operations than on the extensive work of planning a combination.

"Stopping integration activity falls short of calling off the merger, but it could be viewed as a step in that direction," Wachovia Securities analyst Samuel Brothwell said in a note.