Duke and Piedmont are based in Charlotte, N.C. and deliver natural gas to homes and businesses in different regions. But Duke primarily owns electric utilities that serve customers in seven states in the Midwest and Southeast. Duke’s all-cash acquisition price of $60 a share for Piedmont amounts to a 40% premium to that stock’s closing price on Friday. Similarly, Southern’s $66-a-share buyout of AGL represents a 38% premium for that company. Duke and Southern are willing to pay high premiums for the regulated gas companies because they offer reliable returns and a way to capitalize on the glut of natural gas. U.S. utilities anticipate only modest growth in electricity sales in the next few years, but gas demand is expected to be robust. That demand will be particularly strong in eastern regions where new natural gas pipelines are […]