Electricity Policy

       

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Merged Duke Energy’s bait-and-switch CEO deal stuns insiders, S&P raters

The New York Times was all over the shenanigans unleashed when a last minute switcheroo by the newly-merged Duke Energy surprised the industry – and insiders – by sacking its putative CEO, Bill Johnson, and handing the reins to longtime Duke CEO Jim Rogers. Here’s their coverage, somewhat edited.

Last Monday, Duke Energy closed its merger with Progress Energy, a $32 billion deal, including debt, originally struck a year and a half ago. William D. Johnson, the head of Progress Energy, was to become chief executive of the combined company, according to the terms of the merger agreement.

But in a news release announcing the deal’s completion, Duke’s newly formed board put the Duke chief executive, James Rogers, in the top spot and said that Mr. Johnson had resigned “by mutual agreement.”

A former board member of Progress Energy involved in the recently concluded Duke Energy-Progress Energy merger blasted the unexpected and abrupt leadership change at the merged company.

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