The purpose of the reverse stock split was to adjust the Duke stock share price to Progress Energy's stock price. Could it have been done differently? Yes. Progress Energy's price could have been adjusted to Duke's price. Which, in introspect, I think I would have preferred.
Thank you for the answer. I am a passive DUK shareholder. I have taken the last couple months off from looking at stocks and just let them ride (and collect the dividends). Is the merger about to take place?
First what a reverse split does is reduce the number of outstanding shares and make the price look more valuable.
Second what a reverse split does is simple make a price of a stock higher so it does not get delisted, very coming in poor performing sub $1.00 priced companies.
Third it's done to make the price look similar to another, as in this very merger of PGN and DUK.
84 years of dividends looks very nice to me. I owned DUK 20 years ago as a drip invester (It paid for my college), now I'm back since PGN doesn't exist.
There are absolutely no indicators what so ever as to DUK's price going south or the dividend shrinking. This merger is nothing but good news for everyone involved, to me. Lower costs of operation, better deals for consumers, continued dividends for investors.