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Duke Energy (DUK) CEO Jim Rogers says his firm is in talks with North Carolina utility...

Duke Energy (DUK) CEO Jim Rogers says his firm is in talks with North Carolina utility regulators and the state's AG over the firing of Bill Johnson as CEO after Duke's acquisition of Progress Energy. The regulator could theoretically withdraw its approval of the merger and even reinstall Johnson as CEO, although that's seen as unlikely. (Duke Q2)
Comments (5)
  • PM's Rock
    , contributor
    Comments (136) | Send Message
     
    This and the board resignations made me pull the plug on DUK. Am I premature or getting out at the right time? Only time will tell.
    2 Aug 2012, 11:10 AM Reply Like
  • freebra
    , contributor
    Comments (282) | Send Message
     
    I also 'pulled the plug' on Duke. This move was obviously planned long before the merger was approved. Eighteen months to get approvals, and possibly a minimum of a year of negotiations with PGN even before requesting approvals (?). Plenty of time to verify Johnson's "fit" and status (severity-verification) of Crystal River's Nuclear Vessel Containment Building (cracks) repair or decommission expenses. The Utilities' Commission(s), FERC, DoJ, et. al. were all intentionally misguided. Duke used Johnson's (proposed) position as CEO of the combined companies, as a ploy to appease the Commission(s), PGN's Exec's, PGN's employees, and PGN's stockholders until they received all the merger approvals.

     

    I say RECIND the Approval(s) on the grounds of poor business ethics and deceiving the authorities, employees and stockholders. This is not the first time Duke has been unethical in their dealings (Ref: The Indiana Utilities Commission (currently), previous mergers, excessive rates, etc.).

     

    Cannot imagine Duke being the largest Electric Utility in the US with their outrageous rate increases and pitiful business ethics.
    2 Aug 2012, 12:24 PM Reply Like
  • old crank
    , contributor
    Comments (20) | Send Message
     
    I do not understand the supposed need for the North Carolina Utilities Commission to approve utility companies' personnel changes.

     

    Is the real problem here that Rogers might not have let the merger go through if he had known he wouldn't be the CEO, and they should have given him the chance to de-rail it? Seems to me Duke Energy was pretty well run before the merger - I'd let them continue to decide personnel matters.
    2 Aug 2012, 04:27 PM Reply Like
  • romilar
    , contributor
    Comments (698) | Send Message
     
    Good question O.C. I also think Duke was/is pretty well run.I have a problem with a co. this big,this well run,spending huge time-effort and who knows how much money on this M/A only to gamble it all on a personnel change.In any event i'll hang on to my reverse shares and may even add.Whats the worst?The comm. says cancel the whole deal? I'm back where I started .Ok by me..
    2 Aug 2012, 10:31 PM Reply Like
  • Fi-Slut
    , contributor
    Comments (146) | Send Message
     
    If they were to reverse the deal I would be out a lot of PGN & DUK shares as well as a good dividend, all of which I let go of in light of the 3-1 reverse split.

     

    I very much doubt a deal this big and complex will be reversed. There's got to be a lot of political clout behind the scenes as well....

     

    I'm very happy with all the cash I got for my shares, at prices higher than either of the companies have ever been worth since the DUK spin off of SE (Spectra Energy) - which I still own.

     

    So even if DUK goes to $70 I am free of wondering and watching:

     

    a) the price

     

    b)the Crystal River Nuke cost & denouement,

     

    c) the maintenance of a $3.06 dividend when DUK was paying $1.00 pre-merger. (PGN paid $2.48, but its Nuke redo is going to be very costly.)

     

    So I plan to sit and watch without skin in the game. It would be interesting if they decided to split the stock 2 for 1 to bring the price and dividends down, after giving stockholders 1/3 less shares. I wonder how many non option traders will buy at the current price?
    5 Aug 2012, 05:23 PM Reply Like
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