Constellation Energy (CEG-$25.76) confirmed that it retained Morgan Stanley and UBS to advise on available strategic alternatives, such as a sale of the company. France’s EDF SA, which owns a 9.5 percent stake in the company and is a joint partner with respect to nuclear projects, could be a likely suitor.
Despite assurances by Michael El-Hillow, Chief Financial Officer of Evergreen Solar (ESLR-$6.20), the Chapter 11 filing by Lehman Brothers could expose the solar panels maker to a potential shareholder dilution of more than 20 percent if shares lent to an affiliate of the insolvent brokerage are not returned.
Like most refineries, profitability at Holly Corp (HOC-$35.26) depends on the spread between market prices for petroleum products (such as gasoline and diesel fuel) and crude oil prices. In the wake of Hurricane Ike, about 20 percent of U.S. refinery capacity has been idled — creating the perfect storm for refiners, such as Holly, located outside the Houston beltway.
Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.