9 replies to this topic

[Euphorius]

Here we go again. Let's hope this one turns out better than Wachovia did. Article

[ctl]

Doubt it will be any better. And Raleigh will also be disproportionately hit by imminent NC state employee layoffs.

[Gard]

The deal still needs regulatory approval though.  The merger still needs approval by regulators and one NC utilities board member talked to on tv kind of indicated that the NC board would likely vote to block the merger and stated the both companies are sufficiently profitable on their own to be viable and a merger would give them practically complete control over the state's electricity.  This wouldn't be surprising either as utility regulators as of late have been on a blocking craze.  On another note, according to THIS link, another power company, Dominion, has jumped into the foray, making a bid to buy Duke AND Progress energy.  I don't believe we will see a clear-cut resolution to this anytime soon...

Edited by Gard, 10 January 2011 - 09:27 PM.

[krazeeboi]

Gard, on 10 January 2011 - 09:26 PM, said:

The deal still needs regulatory approval though.  The merger still needs approval by regulators and one NC utilities board member talked to on tv kind of indicated that the NC board would likely vote to block the merger and stated the both companies are sufficiently profitable on their own to be viable and a merger would give them practically complete control over the state's electricity.  This wouldn't be surprising either as utility regulators as of late have been on a blocking craze.  On another note, according to THIS link, another power company, Dominion, has jumped into the foray, making a bid to buy Duke AND Progress energy.  I don't believe we will see a clear-cut resolution to this anytime soon...

The article you linked to seems to indicate the very opposite:

"That's very unique in this day and age to be able to capture these types of savings," Rogers told Reuters. "I think that gives us a leg up in the (regulatory) process."

Analysts said even though the merged company would be dominant in both states, it stood a strong chance of winning regulators' backing.

"As long as there is assurance and protections in place that will both prove the financial strength of the company and benefit the consumers, then regulators will approve it," said Nathan Judge, an analyst with Atlantic Equities in London...

But the Dominion offer is likely to end there unless Duke's bid for Progress falls apart, as hostile deals in the utilities sector are very uncommon and difficult to complete.

I'm not saying that I'm a cheerleader of this deal, and I've also noted that it seems that Charlotte-based companies prosper sometimes at the expense of other state-based companies which is unfortunate. But from what I've seen and read, it appears that the deal will go through.

[ctl]

If Dominion or Southern enters the fray, the Raleigh HQ will be lost nevertheless. I don't see the regulators turning this deal down, although they'll extract a concession or two. It's not unusual for one electric utility to have near-complete coverage of a state. Southern's Georgia Power has that in Georgia, for example, outside of EMCs and municipals. Regulators allowed Georgia Power to acquire Savannah Electric in 2006, a deal with similarities to Duke/Progress.

[49er]

Duke is a great company and I have no doubt they will continue to serve the Triangle well as a corporate citizen. From what I have read, both companies (Although Duke was the stronger of the 2) were very concerned with future capital expenses for greener technologies, new power plants, etc. I would much rather see the two merge than one or both be bought out by a non NC company. It seems that Progress was more of a takeover target was realized.  

It's still early on, but Wells Fargo is still very visible in Charlotte after digesting Wachovia.

[AirNostrumMAD]

Euphorius, on 10 January 2011 - 05:50 PM, said:

Here we go again. Let's hope this one turns out better than Wachovia did. Article

Better us  - Charlotte - than somewhere else out of state.

Edited by AirNostrumMAD, 12 January 2011 - 03:50 PM.

[Merboy]

As a matter of interest, how will this affect Raleigh? I got an email from Progress today saying yadda yadda good for the future yadda may mean lower power bill etc. Then it had a disclaimer about forward-looking terms and how everything the letter says may or may not be true at all. And if this does mean that Charlotte's "profile will be boosted as the state's business and finance capital" and Raleigh is robbed of a fortune 500 company what will that *really* mean for Raleigh? Charlotte is all good and well in my book but I'm concerned about Raleigh's development as a flourishing city.

[Jones133]

News said it will be a wholly owned subsidiary so that means essentially no change for Raleigh.

[RALNATIVE]

Eventhough, Progress will still loose alot of autonomy and Raleigh will loose a corporate headquaters.