Piedmont Natural Gas Co Inc. (PNY) - NYSE
  • Oct. 26, 2015, 3:31 PM
    • Duke Energy (DUK -2%) is paying too much for Piedmont Natural Gas (PNY +36.7%) in "almost any reasonable scenario," Citigroup’s Praful Mehta asserts.
    • DUK is paying ~$4.9B, a $1.4B premium (~40%) vs. PNY's Oct. 23 closing price and close to 4x book value, and "no synergy bridge gets you to $1.4B," Mehta says, also noting the premium is relative to a 52-week high stock price for PNY.
    • Mehta considers the deal "a red flag" on management's direction: "Firstly, is there a meaningful problem in the growth profile of the underlying business (LatAm)? Secondly, would management rather destroy value to hold on to a growth target that may not be achievable rather than realign growth targets?"
    | Oct. 26, 2015, 3:31 PM | 8 Comments
  • Oct. 26, 2015, 12:45 PM
    | Oct. 26, 2015, 12:45 PM | 1 Comment
  • Oct. 26, 2015, 9:15 AM
    | Oct. 26, 2015, 9:15 AM
  • Oct. 26, 2015, 7:12 AM
    • The all-cash deal works out to $60 per share for Piedmont (NYSE:PNY), about a 40% premium to Friday's $42.21 close. Duke (NYSE:DUK) will also assume roughly $1.8B in PNY existing net debt, bringing the total enterprise value to $6.7B.
    • The two hope to close the deal by year-end 2016.
    • A conference call is set for 8:30 ET.
    | Oct. 26, 2015, 7:12 AM | 43 Comments
Company Description
Piedmont Natural Gas Co., Inc. is an energy services company. It engages in the distribution of natural gas to residential, commercial, and industrial and power generation utility customers. The company through its subsidiaries invests in joint venture, energy related businesses, including... More
Sector: Utilities
Industry: Gas Utilities
Country: United States