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Duke Energy


reached north into Ohio Monday to acquire



for stock worth $9.1 billion, expanding its reach of its electricity and gas utilities.

Duke will exchange 1.56 shares for each share of Cinergy, or about $45.80 worth of stock based on Friday's close. Cinergy gained $3.62, or 9%, to $44 in premarket trading Monday, eclipsing its 52-week high of $42.63.

The combined company will have 3.7 million retail electric customers and 1.7 million gas customers in Ohio, Kentucky, Indiana, North Carolina, South Carolina and Ontario. Total annual revenue will be about $27 billion, with earnings of just under $2 billion, with the transaction adding to earnings in the first full year of operations.

Cinergy's shareholders will end up with 24% of the combined company's shares, while Cinergy's Chairman and CEO James E. Rogers will be CEO of the surviving company. Paul M. Anderson, the chairman and CEO of Duke, will be chairman of the combined company.

Simultaneous with the merger announcement, Duke announced plans to raise its annual dividend by 14 cents, or 12.7%, to $1.24.