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Well this news might keep the stock up for at least 10 minutes before short sellers attack by buying up credit swaps and signaling "this means the potential bid is a hoax!" Ok, I'm a little bitter... ;) Remember, EDF already owns nearly 10% of Constellation. Now the question is IF it did happen, how long would it take to go through regulators and in the time the bid was outstanding could shorts create enough panic to bankrupt the company ;) (yes, I said bitter)

• EDF is considering a bid for Constellation Energy (NYSE:CEG) , its US partner, even as it prepares finally to set the seal on a sweetened £12bn (€15bn) offer for British Energy, the UK's nuclear operator.
• Meanwhile, the French group's board met in Paris yesterday to discuss the group's options for further investment in the US, where a crisis of confidence has sent its US partner's shares crashing in the past few weeks. EDF earlier this month doubled its stake to 9.51 per cent in Constellation, which was to have been its entry into the potentially lucrative US nuclear relaunch.
• People close to the situation said EDF had not yet decided whether to bid for the group, which has an estimated enterprise value of $10bn (€6.9bn). Constellation yesterday confirmed that it was in advanced talks with a potential buyer, and an announcement on a takeover or asset sale could be imminent.

• State utility regulators will have the final say over a sale of Constellation Energy Group, Gov. Martin O’Malley’s office said Wednesday.
• The potential sale — disclosed by Standard & Poor’s, a major credit rating agency, earlier in the day — could jeopardize more than 5,000 local jobs and, analysts say, potentially drive up electricity costs. Customers of Baltimore Gas & Electric Co., a subsidiary of Constellation, already have seen energy costs jump more than 70 percent in less than three years. (we don't count that in our official inflation reports - remember, stick to the story inflation is 1.2% for GDP purposes)
  
• A public company, Constellation) isn’t regulated by the state. But BGE, which serves 1.2 million electric customers and 640,000 gas customers in Maryland, falls under the regulatory thumb of the Maryland Public Service Commission.
• O’Malley spoke with Constellation CEO Mayo Shattuck III Wednesday morning by phone, said Rick Abbruzzese, an O’Malley spokesman. The governor was not ready to judge the merits of any possible deal for Constellation, Abbruzzese said, but did express concern over consumer anxiety about rising energy costs and the company’s role as one of Maryland’s biggest employers.

Maybe rates will be cheaper if the company can be driven into bankruptcy despite owning some minor assets... such as nuclear plants.
Obviously this deal must of already been in the works if it is coming together so quickly.