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Duke, Progress Energy shareholders overwhelmingly approve merger

Posted August 23, 2011

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— Shareholders in Duke Energy (NYSE: DUK) voted overwhelmingly today to approve a merger with Raleigh-based Progress Energy (NYSE: PGN).

Progress Energy shareholders later approved the merger with some 95 percent voting in favor.

“Most votes had been cast in electronic balloting in the last several weeks, with some shareholders voting at the meeting today,” Progress said in a statement.

Progress shareholders met in Raleigh.

Bill Johnson

Duke’s shareholders voted more than 90 percent in favor of the deal, Duke said in an announcement.

Progress shareholders will see their stock converted to 2.6125 shares of Duke stock following a reverse 3-for-1 split of Duke shares that was approved Tuesday.

"Progress Energy and Duke Energy have rich, century-long traditions of success as independent companies," said Bill Johnson, Progress Energy chairman and chief executive officer. He will serve as CEO of the merged company.

"Our shareholders agree that combining them will make for an even stronger company - one equipped to meet the significant energy challenges ahead with enhanced value to our shareholders while meeting our customers' needs reliably, affordably and in an environmentally sound manner, he added."

Shareholders also approved a reverse 3-for-1 stock split in order to reduce the number of available Duke shares. The stock split would be part of the merger closing.

“Our shareholders have voiced their strong support for the merger between these two companies,” said Jim Rogers, chairman, president and chief executive officer of Duke Energy. “The merger will increase our ability to more economically modernize our generation fleet and grid while providing significant savings to customers through improved fuel purchasing power and greater plant dispatch efficiency.”

Progress Energy logo

If the merger goes through, Progress-Duke would become the nation’s largest utility with more than 7 million customers across the Carolinas, Florida, Indiana, Kentucky and Ohio.

Based on stock value, the combined company would be worth well over $35 billion, based on Dec. 31, 2010 stock prices.

Rogers will serve as executive chairman of the combined company.

Corporate headquarters will be in Charlotte, but Progress has said a “substantial” operation will remain in Raleigh.

The combined board of the “new” Duke Energy will include 18 members, 11 as designated by Duke and seven by Progress.


 

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  • SmokeWagon Sep 1, 2011

    ..."The merger will increase our ability to more economically modernize our generation fleet and grid while providing significant savings to customers through improved fuel purchasing power and greater plant dispatch efficiency....”

    LOL...don't hold your breath for ANY SAVINGS...!!!!! Just like taxes, banks, oil and insurance companies..."savings"...AIN'T NEVER GONNA HAPPEN...!!!!

  • mswayze Aug 25, 2011

    I understand this 'deal' is about another reactor for North Carolina- I saw where TVA has one for sale- it'd make more sense than building another one.
    MODERATOR- hopefully you have your own link for this article- http://www.timesfreepress.com/news/2011/aug/24/for-sale-nuclear-reactor/

  • barbstillkickin Aug 25, 2011

    Well why not they charge so much now who cares anymore. We are either going to owe our lives to these companies or go back to the days when electricity was not needed.

  • WooHoo2You Aug 24, 2011

    Any merger of one monopoly with another monopoly to form an even larger monopoly, is BAD for consumers."

    "mo·nop·o·ly    [muh-nop-uh-lee] Show IPA noun, plural -lies. 1. exclusive control of a commodity or service in a particular market, or a control that makes possible the manipulation of prices."

    Uh, they are not yet monopolies. Obviously not by definition. They might, however, be seeking to become a monopoly.-fayncmike

    Now since the government regulates what they can charge I am not sure they could be considered a 100 percent "monopoly" HOWEVER I do not have any other choice on where to get electricity.

  • dumbhick Aug 24, 2011

    "And so the shareholders will increase there profits,and the homeowners and renters will suffer because of increases in their power bills."

    Maybe more significant, the resulting layoffs will mean more working folks not working, more people that need financial aid, probably more foreclosures ...... yes, the merger will be good ...... for a few of the "important" people.

  • livinggood2 Aug 24, 2011

    And so the shareholders will increase there profits,and the homeowners and renters will suffer because of increases in their power bills.

  • katzpauz Aug 24, 2011

    We should all be against such MEGA-mergers. More competition is the key to lower rates, not less. Have not learned our lesson from the "Mega-Bank mergers?" Keep these companies separate and open up the electric lines for competition....if Duke's rates are lower, I don't mind paying for that electricity....they can do it....The power lines are connected. They know exactly how much power they put into the system and how much comes out....and with a meter at your house, you can buy power from any of these power companies! Keep these companies separate....the technology is there.

  • tamontello Aug 24, 2011

    FYI Duke's rates are LOWER than Progress' rates.. check the rate schedules

  • yesnomaybesok Aug 24, 2011

    "Our shareholders agree that combining them will make for an even stronger company - one equipped to meet the significant energy challenges ahead with enhanced value to our shareholders while meeting our customers' needs reliably, affordably and in an environmentally sound manner, he added." all i can get from this statement is : greed... greedy.... money hungry.....

  • Mountaingirl14 Aug 24, 2011

    "That was the assumption going into the merger. The new CEO is going to be from Duke energy." hi_i_am_wade

    The new CEO is going to be Bill Johnson, the current CEO of Progress Energy. Apparently you not only didn't read the article, you also didn't even look at the picture.

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