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Duke Energy Corporation Message Board

  • CHABSENTIA CHABSENTIA Dec 15, 2006 12:24 PM Flag

    Two Spin-Offs

    If you haven't received the word then here is the Deal:

    The Dividend on Duke will be $.84 and the Dividend on Spectra will be $.88. So if you have 200 shares of Duke then you will have a dividend of 200 times $.84 for Duke and 100 times .84 for Spectra. People will have to plug in their own numbers for their own shares. I used the smallest number of Duke shares that make 100 shares of Spectra.

    Also during the first 6 months of 2007 Spectra will be spinning off some of its Pipelines into a third Comapny which will be an MLP.

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    • This is great time for Duke Share holders. It is truely Christmas. I believe Spectra will be the golden egg and I do think you will get a better price for it than what you will receive during the Duke Split. Duke is a deal at 34.00 when you consider the tax break and the projected shares of Spectra.
      GO DUKE

    • You fouled up the math, but you're on the right track. The div. will be 1.28 which is exactly the div payable on DUK. This info. was released by Duke posting the info. about a week ago. Thanks for the reminder however.

      • 1 Reply to cic118118
      • I didn't foul up on the Math.I did ask a few weeks ago about the $1.28.Check on it.If you have 200 shares right now then you have 200 times 1.28 or a dividend of $256.00 a year. Now look at this.It has been announced that Spectra is going to pay $.88. Since you will have 100 shares of Spectra because you have 200 shares of Duke then you will get $.88 times 100 or $88.00. If you then go to Duke then the difference according to you in order to make the $1.28 would be $1.28 minus $.88 or $.40

        This would mean 200 shares of Duke at $.40 is $80.00 and 100 shares of Spectra would be $88.00 for a total of $166.00 so you would lose $90.00 a share from your original Dividend.It gets worse the more shares that you have.A person that now has 2000 shares loses over $800.00 a year.

        I wrote Duke IR as it seemed confusing because of theirt release that the dividend would be a total of $1.28 . The problem is there is not a 100% proportion as it is 1 share of Spectra for every two shares of Duke. So here is how it goes in the 200 share example above and 84 for Duke and .88 for Spectra.

        200 shares of Duke at $.84 is $168.00

        100 shares of Spectra at $.88 $ 88.00

        Total is $256.00 which is the original dividend.

        The Spin-Off from Spectra and used as a third spin-off in the form of an MLP is just a Bonus.

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