Duke Energy Shareholders Approve Cinergy Merger
CHARLOTTE, N.C. – Duke Energy shareholders today overwhelmingly approved the proposed merger with Cinergy.
At a special meeting held this morning in Charlotte, 95 percent of the Duke Energy shares voted were in favor of the merger with 75 percent of outstanding common shares being voted. Cinergy shareholders also approved the merger during a separate meeting this morning. Under the merger agreement previously announced and approved today, each common share of Cinergy will be converted into 1.56 shares of Duke Energy common stock upon closing of the merger.
“We’re pleased that our shareholders have overwhelmingly thrown their support behind the merger,” said Chairman of the Board and Chief Executive Officer Paul M. Anderson. “By combining with Cinergy, we are bringing together two strong companies with a shared history of providing reliable, reasonably priced electric service and achieving high levels of customer satisfaction.
“The new Duke Energy will have greater financial strength and flexibility which will allow us to continue to deliver strong returns for our shareholders and to maintain the quality and reliability of service that our customers expect and deserve,” added Anderson.
Also during the special meeting of shareholders, Anderson announced that upon closing of the merger, the franchised electric and gas utilities – Duke Power in North Carolina and South Carolina, Cincinnati Gas & Electric in Ohio, Union Light Heat and Power in Kentucky, and PSI Energy in Indiana – will all be known as Duke Energy.
“We believe using one name supports one company, one stock and one team, regardless of how our business grows and evolves,” Anderson noted. “The unified name supports our focus on providing consistent, top-notch service for our customers across all of our businesses.”
After the merger is complete, Anderson will become chairman of the board of the new Duke Energy. James E. Rogers, currently chairman and chief executive officer of Cinergy, will be president and chief executive officer. Anderson announced today that Ann Maynard Gray will continue to serve as lead director for the new board.
The merger, announced May 9, 2005, has been approved by state regulators in Ohio, Kentucky and South Carolina; by the Federal Energy Regulatory Commission and the Nuclear Regulatory Commission; and, the companies have satisfied Federal Trade Commission and U.S. Department of Justice review under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
Regulators in North Carolina and Indiana are currently considering settlement agreements reached between the companies and certain interested parties in each state. The companies anticipate closing the merger as early as April.
Duke Energy is a diversified energy company with a portfolio of natural gas and electric businesses, both regulated and unregulated, and an affiliated real estate company. Duke Energy supplies, delivers and processes energy for customers in the Americas. Headquartered in Charlotte, N.C., Duke Energy is a Fortune 500 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at: http://www.duke-energy.com.