Constellation in sale talks- effect of Lehman bankruptcy

Constellation Energy's stock fell from $60 to as low as $13 in a matter of just two days. The company Constellation Energy Group, Inc. supplies energy products and services to wholesale customers, and retail commercial, industrial, and governmental customers in North America.

So, what happened ?

The company's swaps weakened on Monday on concerns about its exposure to Lehman.
Credit default swaps on Constellation's debt jumped to 478 basis points, or $478,000 per year to insure $10 million in debt for five years, from 304 basis points on Monday, according to Markit Intraday.
The cost to insure the debt of Constellation Energy Group soared 60 percent on Tuesday to a record high after an analyst said in a report that banks may pull its credit lines.


And then this:

S&P placed Constellation's ratings on watch "developing," indicating they may be raised, lowered or left unchanged at "BBB," the second lowest investment grade.


And now this:

Constellation Energy Group (CEG - News) shares fell sharply on Wednesday despite the power company's attempt to reassure investors that its credit lines were safe and statement that it was in talks with potential buyers.
Source: Reuters
------------------------------

How quickly does the value of a company change ? These markets are so volatile and so much panic is out there that companies just almost close down. Wow !!