Potential merger between Southern Co and Progress Energy

[DwnTwnRaleighGuy]

Will Progress Energy be sold? Hopefully not very likely, but possible? What do you think?

Story in today's N&O about the possible sale of Progress Energy to an Atlanta, GA based power company called, "Southern Co."

http://www.newsobserver.com/104/story/420655.html

[Tayfromcarolina]

Seems like it was just a rumor that got out of control according to the article. I certainly hope it has no valid basis. I think that Progress Energy has been a great thing for Raleigh and the triangle in general. And if their sold then we lose the one fortune 500 company that we have. But I digress with all the Airline, Bank, and Telecommunications mergers that have taken place in the last couple of years it is definetly in the realm of possibility.

[urbanesq]

that would WAY suck. I know that there have been some additional shake-ups there, but I hope the rumors of a sale are unfounded.

[DanRNC]

PE's stock price is too high for a buyout at this point. I wouldn't put too much on it now.

[DwnTwnRaleighGuy]

I have several friends who work with Progress Energy who have been speaking with there managers about the company being sold. There managers sound pretty convinced that PE will be sold and my other friends have just been notified that there positions will be terminated and luckily they will be given severance packages,(each of them have been there for at least 15 years each). I just get the feeling that they are trying to tighten up the place to be able to sale it off for the best price?

[avery]

This could be a major setback for downtown Raleigh as PE is one of the primary supporters of downtown redevelopment. Hopefully if sold, Southern would be just as proactive about it. I know very little about this company and their management philosophy. I could see them just selling off PE properties to local developers and not redevelop it themselves. It shall be interesting to see what transpires.

[Subway Scoundrel]

I know nothing about mergers but it would make sense. Southern's service map fits well with PE's. I hate it if it happens. Plus the oldtime president just retired and new guys are in and they have 3-5 years to make their mark, drive up their option value, get all the bonus's they can get and leave and retire to FLA to play golf all day. I am sure they don't want to miss that oppty.

I think the easiest way to retire rich is to prime your company to be bought. Not toll through the daily workload to increase shareholder value.

I know they have debt and debt is the virus of a merger, but you can see PE dumping all non-power assests to make it more attractive. They have been doing this for the last 2-3 years.

No expert here, but I bet it would be sold within 1 1/2 years.

[ChiefJoJo]

There have been rumors for months and a couple of articles as to what the impact to the area would be if the only Fortune 500 company were bought out by Atlanta's Southern Company. PE employs about 2000 people in DT Raleigh. Here's two of the most recent articles:

N&O: Would Progress give less?

Progress COO: "stay tuned"

PE has been a HUGE force for DT Raleigh revitalization and investment, and most give them a ton of credit for be able to lure RBC to Raleigh (they gave Highwoods a sweetheart deal for the land for RBC Plaza). There would certainly be layoffs, although most would be in Florida, but certainly some of those 2k would lose out too.

Thoughts?

[DanRNC]

If there was a merger I could see them retaining the PE name but moving all/most top exec positions to Atlanta. I still think they would maintain community relations but not as high a level.

This should be a major wake up call to Raleigh officials-don't rest on your laurels. As I have said in the past RBC is the next guy on the block. The trend is to cut costs and expenses and then drive the stock price up which was done in the case of Progress. RBC seems to be doing the same thing. Maybe a forumer knows more details on M&As.

[Tayfromcarolina]

I like that progress is based here and being our only fortune 500 company I feel they should keep things as is. They have the city and community on their side and the palm of their hands. Why mess up a good thing.