Duke Energy

1. Regulatory Risk: Regulators may reject the proposed merger and place conditions on the deal.

2. Cost Risk: Integration of the two companies could be expensive and could include significant merger-related costs.

3. Competitive Risk: The merged entity could become large enough that it becomes a monopoly and is vulnerable to anti-trust legislation from the federal government.

4. Credit Risk: If the merger is approved, the merged entity will likely be over-leveraged. This could lead to a downgrade in debt ratings and higher borrowing costs.

5. Operations Risk: Merging two different organizations can lead to significant operational risks. These include the potential for combining operations, systems or processes that do not work well together.

6. Customer Risk: If the merger is approved, customers must be informed ahead of time and given time to consider their options. The merged entity could be less competitive than the two separate businesses.

7. Reputational Risk: The merger process may create negative publicity and damage the reputation of both companies.

8. Strategic Risk: The merged entity may be unable to accurately predict market, technology or economic trends, resulting in strategic miscalculations.