Duke Energy And Progress Energy Near $13 Billion Merger (DUK, PGN)

Charlotte, North Carolina-based power company Duke Energy Corporation

is reportedly in talks to acquire its rival Progress Energy Inc.

in an all stock deal that is said to be around $13 billion. On a per-share basis, the cost of the rumored deal would be slightly higher than Raleigh, North Carolina-based Progress Energy's closing price of $44.72 on Friday. Duke Energy Corporation would also assume $11.4 billion of debt and all cash held by Progress Energy Inc., putting the total value of the deal in the range of $23 billion to $26 billion. If the deal goes through, it would allow the newly merged company to save money by reducing costs and finding new sources of energy. The advancing age of the two companies' CEOs is also said to be another reason why they would like to see a deal done sooner than later. Spokesmen for both companies have refused to comment on the speculation surrounding the proposed deal but sources close to the talks have said that a deal could be announced as early as Monday.