Duke Energy, Progress Energy shareholders approve merger

More than 90 percent of Duke Energy’s (NYSE: DUK) shareholders approved the proposed merger with Progress Energy (NYSE: PGN). Progress Energy shareholders also approved the merger on August 23.

Duke Energy shareholders approved a 1-for-3 reverse stock split as well as the issuance of Duke Energy common stock to Progress Energy shareholders upon closing of the merger. The reverse stock split is designed to reduce the number of outstanding Duke Energy shares.

Bill Johnson, Progress Energy's current chairman, president, and chief executive officer (CEO), will take the helm of the new company as the president and CEO upon completion of the merger. Jim Rogers, Duke Energy’s chairman, president and CEO, will serve as executive chairman, adviser to Johnson and lead spokesman on energy policy for two years post merger.

The merger is expected to close by the end of 2011. The new company is expected to have an enterprise value of $65 billion and $37 billion in market capitalization as of Dec. 31, 2010. It will also have 57 GW of domestic generating capacity from coal, nuclear, natural gas, oil and renewable sources.

Both companies have made all appropriate regulatory filings and have received approval from some state and federal agencies, including the Kentucky Public Service Commission and the Federal Trade Commission.

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