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Duke Energy Corporation Message Board

  • senyome senyome Dec 2, 2011 4:17 PM Flag

    Reverse Split

    Any idea when the reverse split will take place? Shareholders voted for it in August but I haven't read anything further. I am usually leery of companies engaging in reverse splits but the general consensus of analysts seems to be to hold on and not sell. Will the dividends hold up? Any thoughts?

    This board has deteriorated into absolute uselessness and certain posters should be barred by Yahoo since they contribute nothing to the discussion of DUK and seem to be giving themselves 5-star ratings for their infantile rants.

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    • Temporary Suspension of Trading Under Registrant's Employee Benefit Plans, Finan

      Item 5.04. Temporary Suspension of Trading Under Registrant's Employee Benefit Plans
      On November 30, 2011, Duke Energy Corporation (the "Company") received notice from the plan administrator of the Duke Energy Retirement Savings Plan, the Duke Energy Retirement Savings Plan for Legacy Cinergy Union Employees (Midwest), and Duke Energy Retirement Savings Plan for Legacy Cinergy Union Employees (IBEW 1393) (collectively, the "401(k) Plan") informing it that the Duke Energy Common Stock Fund under the 401(k) Plan will be closed for participant transactions from the close of business on December 30, 2011 until sometime during the week of January 1, 2012. The blackout period is required by the 401(k) Plan's recordkeeper, Fidelity Investments, in connection with a proposed 1-for-3 reverse stock split of the Company's common stock, which will occur in connection with the proposed merger of the Company and Progress Energy, Inc.

      Although the date of the closing of the merger (and the related 1-for-3 reverse stock split) has not yet been finalized, the notice was sent to the Company at this time due to the advance notice requirements of the Employee Retirement Income Security Act of 1974, as amended.

      On December 6, 2011, the Company provided the attached notice to its directors and executive officers informing them that, during the blackout period, pursuant to Section 306 of the Sarbanes-Oxley Act of 2002 and the Company's insider trading policy, they will be unable to trade in the Company's common stock (or related securities). All dates contained in the attached notice assume the closing will occur on January 1, 2012, but if the closing does not occur on that date, the attached notice will be updated to reflect the actual date of the closing of the merger and the related 1-for-3 reverse stock split. During the blackout period and for a two-year period thereafter, information about the actual beginning and ending dates of the blackout period may be obtained, without charge, by contacting Duke Energy Corporation, Attention: Corporate Secretary, 550 South Tryon St., Charlotte, NC 28202 (telephone (704) 382-2204).

      The notice to directors and executive officers of the Company is included as Exhibit 99.1 hereto.

      Item 9.01. Financial Statements and Exhibits.
      (d) Exhibits.

    • The split occurs the day the merger is completed. They had hoped it would be the end of 2011, but likely will be early 2012.

    • This is all I could find on it -

      What does the reverse stock split mean for the dividend?
      It would work in much the same way as for the number of shares of stock. After a 1:3 reverse stock split, you would own one-third as many shares, but we expect the quarterly dividend per share would triple. This assumes Duke’s board maintains the dividend at its current level and adjusts it for the reverse stock split. In that case, the monetary value of your total dividend would not change.

      For example

      The table below provides an illustrative example of the effect of a 1:3 reverse stock split, based on the assumptions described above.

      Illustrative Example Number
      of shares owned Price
      per share Quarterly dividend
      earned per share Total value
      of your holdings
      Before a reverse stock split 300 $18 24.5 cents $5,400 value of shares
      $73.50 quarterly dividend
      Immediately after a reverse stock split 100 $54 73.5 cents $5,400 value of shares
      $73.50 quarterly dividend

      The reverse stock split would become effective if, and at the time, the merger is completed, at a ratio of 1:3, to be determined by Duke’s board of directors after consultation with Progress Energy.
      The example presented in the table assumes for the reasons we have described that the reverse stock split does not change the company’s total market valuation and that Duke’s board of directors adjusts Duke’s current quarterly dividend to reflect the reverse stock split

82.52+0.01(+0.01%)Sep 23 4:00 PMEDT