Duke Energy Likely to Buy Progress Energy

Duke Energy

Duke Energy to buy Progress Energy

According to a report yesterday from the Associated Press, there may be an acquisition in the arena of pubic utilities. In a deal which would keep the headquarters of the purchased company relatively unchanged, North Carolina based Duke Energy Corporation appears ready to purchase Progress Energy Inc, also based in the state.

The deal could be in excess of $13 billion according to estimates from the Wall Street Journal. Also according to the Journal, estimates could be as high as $26 billion if one includes the nearly $.7 billion which Progress Energy has in cash plus another eleven and a half billion dollars in long-term debt.

Neither company has yet released any details, but an announcement is expected this week. From reports, however, it is believed that the purchase would primarily involve a stock swap. Shares of both companies were up slightly at the end of last week.

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