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| Progress Energy |
Duke Energy Corp. Progress Energy Inc. acquires 13700000000 $ in stocks, causing the largest U.S. utility and increase their ability to build new facilities to meet future emissions limits of greenhouse gases.
Progress Energy holders will receive 2.6125 shares of Duke for each of their shares, the company said today in a statement. The purchase of securities from Raleigh, North Carolina-based Progress 46.48 per share, or 3.9 percent above the closing price on Jan. 7, the two companies.
Duke, in Charlotte, North Carolina, will be about $ 12200000000 in the debt of Progress Energy. The purchase adds units in the vicinity of the Duke service area in North Carolina and South Carolina and the power distribution unit of Progress Florida. The company serves about 7.1 million customers in six states.
Together, the companies are better able to invest in new power plants, including nuclear reactors to make in order to reduce the emissions of carbon dioxide, said William Johnson, CEO of Progress, in a telephone interview. expected with a small plant retirements, "we will replace those who have something and of course nuclear is an option that is easier for a company this size."
Johnson, 57, is the utility that replaces CEOJim Rogers, 63, CEO of Duke, consulting and as a spokesman for the Johnson policy of the company's chief OnEnergy is.
Strategic planning
Rogers will "focus on the long-term strategic planning, focusing on new technologies that change and how we do in our business model," he said in a telephone interview.
Rogers has been a leader in the energy sector in the debate on the law of the United States climate, to support the efforts of last year a federal cap and trade, which also protect the financial interests of the public services.
Acquisitions in the energy sector of the United States have seen that companies increase their customer in order to seek counter falling prices. Profit expansion through mergers may also spread the cost of complying with environmental regulations or building new power plants and more customers. Utility regulators generally provide consumers with the bill for the reimbursement of these costs.
This is the largest acquisition by Duke, which bought a Midwest utility Cinergy 10500000000 $ in 2006. Duke extended its regulated utility business after losing a bid last year by E. ON AG power company PPL Corp. Kentucky
Premium progress
The premium of 3.9 per cent lower than the premium paid by an average of 17 percent of utilities in the United States over the past two years, according to data compiled by Bloomberg. Duke will pay 8.6 times earnings before interest, taxes, depreciation and amortization, which is the average of expenditure for services.
Duke fell 27 cents, or 1.5 percent, to $ 17.52 at 10:13 clock on the market in New York Stock Exchange. Progress fell 64 cents, or 1.4 percent, to $ 44.08.
The offer "is not enough to offset the" progress "of a rising risk profile after the merger," said a note today Angie Storozynski, Andrew Weisel Zagra Cleo and Macquarie Capital USA Inc.
Progress so that shareholders receive a higher dividend for the purchase, also be exposed to volatile wholesale energy markets, analysts said.
Johnson said that by the shareholders of credit enhancement and cost savings in the operation of neighboring plants to benefit more energy efficient. The fuel and shipping costs should be $ 600,000,000 $ 800,000,000 over the next four five years ago, "said Rogers.
Approvals
The merger is subject to shareholder approval and antitrust review of the Federal Trade Commission. In addition, the company permission to Federal Energy Regulatory Commission, the Nuclear Regulatory Commission, Public Utilities Commission of North Carolina and South Carolina Public Service Commission.
The companies will also report on the merger regulators in Florida, Indiana, Kentucky andOhio. There is an unspecified number of layoffs that the company will manage the retirement and pensions, "said Rogers.
The companies expect the federal and state regulatory hurdles clear, without any forced sale Rogers said, and the transaction before the end of the year. Duke is expected to add the result in the first year after closing.
Duke Energy supplies about 4 million customers utility in North Carolina, South Carolina, Indiana, Ohio and Kentucky to, their website. It has nearly 35,000 megawatts of generation capacity.
Transaction Advisers
Progress, from the merger of Carolina Power and Light and Florida Power in November 2000 about 3.1 million customers and more than 22,000 megawatts of utility power generation, such as websites created.
The new company, Southern Co. exceed the number of clients served.
JP Morgan acted as financial advisor to the Duke and lead to the Bank of America and Merrill Lynch provided a fairness opinion. Lazard served as financial adviser to principal and Progress Energy has provided a fairness opinion provided. Barclays Plc also advised Progreso.
See, eg, Lipton, Rosen & Katz acted as legal advisor to Duke Energy. Hunton & Williams LLP served as legal counsel for Progress Energy.
Progress Energy holders will receive 2.6125 shares of Duke for each of their shares, the company said today in a statement. The purchase of securities from Raleigh, North Carolina-based Progress 46.48 per share, or 3.9 percent above the closing price on Jan. 7, the two companies.
Duke, in Charlotte, North Carolina, will be about $ 12200000000 in the debt of Progress Energy. The purchase adds units in the vicinity of the Duke service area in North Carolina and South Carolina and the power distribution unit of Progress Florida. The company serves about 7.1 million customers in six states.
Together, the companies are better able to invest in new power plants, including nuclear reactors to make in order to reduce the emissions of carbon dioxide, said William Johnson, CEO of Progress, in a telephone interview. expected with a small plant retirements, "we will replace those who have something and of course nuclear is an option that is easier for a company this size."
Johnson, 57, is the utility that replaces CEOJim Rogers, 63, CEO of Duke, consulting and as a spokesman for the Johnson policy of the company's chief OnEnergy is.
Strategic planning
Rogers will "focus on the long-term strategic planning, focusing on new technologies that change and how we do in our business model," he said in a telephone interview.
Rogers has been a leader in the energy sector in the debate on the law of the United States climate, to support the efforts of last year a federal cap and trade, which also protect the financial interests of the public services.
Acquisitions in the energy sector of the United States have seen that companies increase their customer in order to seek counter falling prices. Profit expansion through mergers may also spread the cost of complying with environmental regulations or building new power plants and more customers. Utility regulators generally provide consumers with the bill for the reimbursement of these costs.
This is the largest acquisition by Duke, which bought a Midwest utility Cinergy 10500000000 $ in 2006. Duke extended its regulated utility business after losing a bid last year by E. ON AG power company PPL Corp. Kentucky
Premium progress
The premium of 3.9 per cent lower than the premium paid by an average of 17 percent of utilities in the United States over the past two years, according to data compiled by Bloomberg. Duke will pay 8.6 times earnings before interest, taxes, depreciation and amortization, which is the average of expenditure for services.
Duke fell 27 cents, or 1.5 percent, to $ 17.52 at 10:13 clock on the market in New York Stock Exchange. Progress fell 64 cents, or 1.4 percent, to $ 44.08.
The offer "is not enough to offset the" progress "of a rising risk profile after the merger," said a note today Angie Storozynski, Andrew Weisel Zagra Cleo and Macquarie Capital USA Inc.
Progress so that shareholders receive a higher dividend for the purchase, also be exposed to volatile wholesale energy markets, analysts said.
Johnson said that by the shareholders of credit enhancement and cost savings in the operation of neighboring plants to benefit more energy efficient. The fuel and shipping costs should be $ 600,000,000 $ 800,000,000 over the next four five years ago, "said Rogers.
Approvals
The merger is subject to shareholder approval and antitrust review of the Federal Trade Commission. In addition, the company permission to Federal Energy Regulatory Commission, the Nuclear Regulatory Commission, Public Utilities Commission of North Carolina and South Carolina Public Service Commission.
The companies will also report on the merger regulators in Florida, Indiana, Kentucky andOhio. There is an unspecified number of layoffs that the company will manage the retirement and pensions, "said Rogers.
The companies expect the federal and state regulatory hurdles clear, without any forced sale Rogers said, and the transaction before the end of the year. Duke is expected to add the result in the first year after closing.
Duke Energy supplies about 4 million customers utility in North Carolina, South Carolina, Indiana, Ohio and Kentucky to, their website. It has nearly 35,000 megawatts of generation capacity.
Transaction Advisers
Progress, from the merger of Carolina Power and Light and Florida Power in November 2000 about 3.1 million customers and more than 22,000 megawatts of utility power generation, such as websites created.
The new company, Southern Co. exceed the number of clients served.
JP Morgan acted as financial advisor to the Duke and lead to the Bank of America and Merrill Lynch provided a fairness opinion. Lazard served as financial adviser to principal and Progress Energy has provided a fairness opinion provided. Barclays Plc also advised Progreso.
See, eg, Lipton, Rosen & Katz acted as legal advisor to Duke Energy. Hunton & Williams LLP served as legal counsel for Progress Energy.
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