Norwegian SWF looks to block Buffett takeover

Norges Bank Investment Management, the investment management arm of Norges Bank which oversees the country's sovereign wealth fund, said on Wednesday that it was seeking to prevent Constellation Energy Group from convening a special shareholder meeting on 23 December to vote on a takeover. Norway has a 4.8% stake in Constellation.

MidAmerican Energy Company, a unit of Berkshire Hathaway, wants to buy Constellation for what Norges Bank Investment Management regards as too low a price.

"We are one of the biggest shareholders and take these necessary steps in order to safeguard our financial interests," Anne Kvam, the head of corporate governance, said. "In our opinion, the MidAmerican agreement undervalues Constellation, and we expect the board to work for a solution that offers the highest value opportunity." EDF, a French energy company, had drafted an acquisition proposal that valued Constellation "substantially higher" than the proposed sale price, Norges Bank Investment Management said.

The lawsuit requests Constellation postpone the shareholder meeting to allow the company to properly consider all offers and to give shareholders ample time to digest that information and cast fully informed votes.

"The shareholder meeting is less than a week away, and we need to ensure that there is time for the board and the shareholders to evaluate the situation and choose the best solution," Kvam said.

The court has scheduled a hearing for 22 December at 13:00 eastern standard time.

Click here to read Norges Bank's statement