Constellation Energy Soars on $16.4 Billion Calpine Deal (2)

Constellation Energy Corp. shares surged to a record high after agreeing to acquire closely held Calpine Corp. for $16.4 billion in a deal that will create the largest fleet of US power stations.

The stock closed 25% higher at $305.19 on Friday in New York, a record one-day gain. Constellation agreed to pay a mixture of cash and stock, and assume about $12.7 billion of Calpine’s net debt in the deal, the companies said in a statement.

The stock surge underscores the value of reliable electricity. Constellation is expanding as energy consumption in the US is forecast to ...