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Investors may be getting nervous about Progress Energy's (PGN -0.4%) ability to complete its...

Investors may be getting nervous about Progress Energy's (PGN -0.4%) ability to complete its merger with Duke Energy (DUK +0.6%), announced in Jan. 2011. PGN stock now trades at a 4.15% discount to the price implied by the deal terms, and ISI Group speculates regulatory conditions might derail the deal, placing the odds as high as 50% while estimating the market has priced in 20%.
Comments (4)
  • Colorado112
    , contributor
    Comments (29) | Send Message
     
    The FERC has twice rejected filings from Duke & Progress saying the two combined would have too much market power. The two have filed again extending the deadline to mid-summer. If it ends up falling apart I would think Progress Energy will have more problems than Duke. I have always been lead to beleive (by what I read) that Duke was in a better position on this deal than Progress. If the deal falls thru Duke should not be impacted but Progress could tumble into the high 30's or low 40's. The subject of this read Duke investors were getting nervous; I think it should read Progress investors should be getting nervous.
    17 Apr 2012, 07:04 PM Reply Like
  • Blackbeard
    , contributor
    Comments (97) | Send Message
     
    There was almost no premium when the deal was announced in January 2011, so I wouldn't imagine too much of a hit to PGN in the event of termination of the deal. Utilities performed well since the merger was announced, and I doubt PGN would have fared much differently than the industry over that period.
    17 Apr 2012, 08:16 PM Reply Like
  • mmbostick@hotmail.com
    , contributor
    Comments (6) | Send Message
     
    Word about the merger got out in '09, not '11
    18 Apr 2012, 09:20 AM Reply Like
  • fi-slut
    , contributor
    Comments (94) | Send Message
     
    here we go again! Been there & done that with T and deutschebank.

     

    I am long both DUK and PGN and am concerned about skeptical comments about PGN. Any more thoughts about PGN going forward without merger?

     

    It pays a good dividend. Do any of you see threats to that? I've owned PGN since it was Florida Progress. It was always a strong company but recently it has Indian Point Nuke problems....
    22 Apr 2012, 02:15 AM Reply Like
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