At least six investors of Constellation Energy Group, Inc. (NYSE:CEG) have filed lawsuits in State Court in effort to block the planned merger of Constellation Energy Group, Inc. and Exelon Corp under the current conditions.
According to the plaintiffs company's directors breached their fiduciary duties in connection the proposed merger.

On Thursday, April 28, 2011, Constellation Energy Group, Inc. (NYSE:CEG) and Exelon Corporation (NYSE: EXC) had announced that they have signed a definitive agreement to combine the two companies in a stock-for-stock transaction. Under the proposed transaction, Constellation Energy’s shareholders will receive 0.930 shares of Exelon Corp. (EXC) common stock in exchange for each share of Constellation Energy Group (CEG) common stock. Based on Exelon’s closing share price on April 27, 2011, Constellation shareholders would receive a value of $38.59 per share, or $7.9 billion in total equity value. Constellation Energy Group said the exchange ratio represents an 18.1 percent premium to the 30-day average closing stock prices of Exelon Corp and Constellation Energy Group as of April 27, 2011.

Indeed, in response to the takeover proposal shares of Constellation Energy Group, Inc. (NYSE:CEG) increased from $34.30 on Wednesday to over $36.40 during Thursday’s trading.

However, the plaintiff alleges that certain directors of Constellation Energy Group failed to maximize the value that the shareholders would receive from the merger. In fact CEG shares traded during 2010 at almost $37 per share and during 2008 as high as over $100 per share. Additionally at least one analyst has set a target price of $38.00 per share. Constellation Energy Group also reported in 2009 $15.598billion in Total Revenue and $14.34billion in 2010.