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iF YOU OWN 500 PGN WHICH PAYS $2.48/SH OR TOTAL OF $1240 YOU WILL GET 2.6125 OF D FOR EACH PGN SHARE YOU HOLD, IN THIS CASE 1306 SHS OF D WHICH PAY $1.97/SH OR $2573. DOES THIS REALLY SUCK?
Not so fast: the div/share of DUK will be adjusted after the share issuance. I believe there's already a dividend rate projected post-merger that gives PGN holders about a 3% premium over the current payout.It's not the bonanza you have suggested!
Isn't this just another case of the big boys taking care of themselves? Articles in today's newspapers state that DUK needs this merger a lot more than PGN partially because of their last merger.Take a look at Yahoo's estimated earnings for both companies and guess whose estimates next year are less than this year's estimates.
DUK pays .975/share, not 1.97, so your math is off by one-half.DUK has said that the dividend will increase 3% for PGN holders.
SORRY, IT WAS DUKE AND I THOUGHT IT WAS D