Behind every billionaire there is a story!

Buffett’s $4.7 Billion Power Play

Warren Buffett, the famous bargain-hunting billionaire, is in deal mode again.

MidAmerican Energy, a division of Mr. Buffett’s Berkshire Hathaway, has snapped up Constellation Energy for $4.7 billion. It could end up being a bargain-basement price, considering that Constellation is the nation’s largest wholesale power provider and reported $21 billion in revenues last year.

Constellation also traded energy contracts and appeared to be in desperate need of cash to back up some trades that went bad. Sound familiar? Unlike many of the investment banks, though, Constellation has large amounts of rock-solid assets.

He has largely sat on the sidelines during much of the recent carnage on Wall Street, when some of the best-known financial firms went up for sale.

But when Constellation needed a rescue, he stepped in.

read the rest published by NY Times here:

http://dealbook.blogs.nytimes.com/2008/09/18/buffetts-47-billion-power-play/