Duke Energy plans reverse stock split after merger

CHARLOTTE, N.C. (AP) — Duke Energy says it plans a reverse stock split once it completes its acquisition of Progress Energy as planned on Sunday.

With a 1-for-3 reverse stock split, shareholders will get one share for every three shares they now own. The stock price for each share will triple, so that the overall value of the shares remains the same.

Duke Energy Corp.'s takeover of Progress Energy Inc., announced in January 2011, would create the nation's largest electric utility, serving 7 million customers in six states.

Duke Energy also said Tuesday that it will issue a quarterly cash dividend of 25.5 cents, a half-cent increase over its previous level. The company notes that it has been increasing its dividend each year since 2007. The dividend will be paid Sept. 17 to shareholders of record as of Aug. 17. The dividend will be adjusted to 76.5 cents per share if the reverse split occurs before then.

Charlotte-based Duke Energy's stock fell 2 cents to $22.91 Tuesday. Shares of Progress Energy, based in Raleigh, fell 2 cents to $59.70.