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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 14D-1
TENDER U.S. OFFER STATEMENT PURSUANT TO SECTION 14(d)(1) OF
THE SECURITIES EXCHANGE ACT OF 1934
AMENDMENT NO. 12
Empresa Nacional de Electricidad S.A.
(Name of Subject Company)
Duke Energy International, L.L.C.
Duke Energy Corporation
(Bidders)
Common Stock, no par value
(including that represented by
American Depositary Shares) 29244T101
(Title of Class of Securities) (CUSIP Number of Class of Securities)
Carol Graebner, Esq.
General Counsel
Duke Energy International, L.L.C.
5400 Westheimer Court
Houston, Texas 77056-5310
Telephone: (713) 627-6542
Facsimile: (713) 627-5219
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications on Behalf of Bidders)
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Copy to:
Frederick S. Green, Esq.
Ellen J. Odoner, Esq.
Weil, Gotshal & Manges LLP
767 Fifth Avenue
New York, New York 10153-0119
Telephone: (212) 310-8000
Facsimile: (212) 310-8007
(Continued on following pages)
(Page 1 of 19)
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1 NAME OF REPORTING PERSONS: Duke Energy International, L.L.C.
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S.S. OR IRS IDENTIFICATION NO. OF ABOVE PERSONS: 56-2051206
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS: AF
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(e) OR 2(f) N/A
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6 CITIZENSHIP OR PLACE OF ORGANIZATION: State of Delaware
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7 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 0
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8 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7) EXCLUDES
CERTAIN SHARES N/A
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9 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7) N/A
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10 TYPE OF REPORTING PERSON OO
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Page 2 of 19
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1 NAME OF REPORTING PERSONS: Duke Energy Global Asset Development, Inc.
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S.S. OR IRS IDENTIFICATION NO. OF ABOVE PERSONS: 88-0366429
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS: AF
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(e) OR 2(f) N/A
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6 CITIZENSHIP OR PLACE OF ORGANIZATION: State of Navada
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7 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 0
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8 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7) EXCLUDES
CERTAIN SHARES N/A
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9 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7) N/A
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10 TYPE OF REPORTING PERSON CO
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Page 3 of 19
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1 NAME OF REPORTING PERSONS: Duke Energy Services, Inc.
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S.S. OR IRS IDENTIFICATION NO. OF ABOVE PERSONS: 48-0650320
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS: AF
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(e) OR 2(f) N/A
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6 CITIZENSHIP OR PLACE OF ORGANIZATION: State of Delaware
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7 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 0
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8 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7) EXCLUDES
CERTAIN SHARES N/A
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9 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7) N/A
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10 TYPE OF REPORTING PERSON CO
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Page 4 of 19
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1 NAME OF REPORTING PERSONS: PanEnergy Corp.
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S.S. OR IRS IDENTIFICATION NO. OF ABOVE PERSONS: 74-2150460
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS: AF
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(e) OR 2(f) N/A
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6 CITIZENSHIP OR PLACE OF ORGANIZATION: State of Delaware
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7 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 0
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8 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7) EXCLUDES
CERTAIN SHARES N/A
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9 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7) N/A
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10 TYPE OF REPORTING PERSON CO
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Page 5 of 19
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1 NAME OF REPORTING PERSONS: Duke Capital Corporation
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S.S. OR IRS IDENTIFICATION NO. OF ABOVE PERSONS: 51-0282142
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS: BK, WC,OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(e) OR 2(f) N/A
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6 CITIZENSHIP OR PLACE OF ORGANIZATION: State of Delaware
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7 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 0
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8 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7) EXCLUDES
CERTAIN SHARES N/A
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9 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7) N/A
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10 TYPE OF REPORTING PERSON CO
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Page 6 of 19
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1 NAME OF REPORTING PERSONS: Duke Energy Corporation
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S.S. OR IRS IDENTIFICATION NO. OF ABOVE PERSONS: 56-0205520
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP: (a) [x]
(b) [ ]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS: N/A
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(e) OR 2(f) N/A
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6 CITIZENSHIP OR PLACE OF ORGANIZATION: State of North Carolina
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7 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 0
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8 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (7) EXCLUDES
CERTAIN SHARES N/A
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9 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (7) N/A
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10 TYPE OF REPORTING PERSON CO
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Page 7 of 19
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This Amendment No. 12 amends and supplements the Tender Offer Statement
on Schedule 14D-1 filed on February 25, 1999, as amended, by Duke Energy
International, L.L.C., a Delaware limited liability company (the "BIDDER") and a
wholly-owned, indirect subsidiary of Duke Energy Corporation, a North Carolina
corporation ("DUKE"), with respect to the offer by Bidder to purchase for cash
up to 501,947,400 shares of Common Stock, no par value (the "SHARES"), of
Empresa Nacional de Electricidad S.A. (the "COMPANY"), a publicly traded stock
corporation (sociedad anonima abierta) incorporated under the laws of the
Republic of Chile, including Shares represented by American Depositary Shares,
each representing 30 Shares and evidenced by American Depositary Receipts.
ITEM 11. MATERIAL TO BE FILED AS EXHIBITS.
EXHIBIT NUMBER DESCRIPTION
Exhibit (a)(38) Advertisement to be published by Purchaser in the Wall
Street Journal on April 1, 1999 announcing recommendations
by Institutional Shareholder Services.
Exhibit (a)(39) Advertisement to be published by Purchaser in Chilean
newspapers on March 31 and April 1, 1999 regarding
frequently asked questions.
Exhibit (a)(40) Advertisement to be published by Purchaser in Chilean
newspapers during the week of April 5, 1999.
Page 8 of 19
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SIGNATURES
After due inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.
Dated: March 31, 1999
DUKE ENERGY INTERNATIONAL, L.L.C.
By: /s/ BRUCE A. WILLIAMSON
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Name: Bruce A. Williamson
Title: President and Chief
Executive Officer
DUKE ENERGY CORPORATION
DUKE ENERGY GLOBAL ASSET
DEVELOPMENT, INC.
DUKE ENERGY SERVICES, INC.
PANENERGY CORP.
DUKE CAPITAL CORPORATION
By: /s/ BRUCE A. WILLIAMSON
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Name: Bruce A. Williamson
Title: Authorized person
Page 9 of 19
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EXHIBIT INDEX
EXHIBIT NUMBER DESCRIPTION
Exhibit (a)(38) Advertisement to be published by Purchaser in the Wall
Street Journal on April 1, 1999 announcing recommendations
by Institutional Shareholder Services.
Exhibit (a)(39) Advertisement to be published by Purchaser in Chilean
newspapers on March 31 and April 1, 1999 regarding
frequently asked questions.
Exhibit (a)(40) Advertisement to be published by Purchaser in Chilean
newspapers during the week of April 5, 1999.
Page 10 of 19
EXHIBIT (A)(38)
Page 11 of 19
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IMPORTANT MESSAGE TO SHAREHOLDERS OF
EMPRESA NACIONAL DE ELECTRICIDAD S. A.
FROM DUKE ENERGY INTERNATIONAL
ISS RECOMMENDS VOTING FOR AMENDING ENDESA-CHILE BYLAWS
WE AGREE!
On March 29, 1999, Institutional Shareholder Services (ISS), the nation's
leading institutional voting advisory service, recommended that Endesa-Chile
shareholders vote FOR amending the company's bylaws to raise the shareholder
concentration limit from 26 percent to 65 percent.
In making its recommendations, ISS said:
o Shareholder concentration limits "serve to restrict value in the long run."
o "Companies with these restrictions lose out on new opportunities and their
value suffers."
o "Endesa shareholders would be in good hands with Duke (Energy) executives
in a leadership position."
o "There are vast synergies between Endesa and Duke (Energy) that should
create a multitude of growth opportunities that enhance Endesa shareholder
value."
Duke Energy International has offered to purchase up to 501,947,400 Endesa
common shares, including common shares represented by American Depositary Shares
at 7,500 Chilean pesos per ADS. This offer represents a premium of approximately
48 percent over the average price of Endesa shares for the six months prior to
Duke Energy's announcement of its offer. But, the offer cannot go forward unless
the bylaw amendment is approved.
YOUR VOTE IS EXTREMELY IMPORTANT! Duke Energy urges you to protect the value of
your investment by signing, dating and returning your proxy today and voting FOR
the bylaw amendment.
YOUR BANK OR BROKER MUST RECEIVE YOUR VOTE BY APRIL 5, 1999 IN ORDER TO HAVE
AMPLE TIME TO DELIVER IT TO CITIBANK.
If you have any questions, or need last minute assistance in
voting your ADSs, please contact Innisfree M&A Incorporated
at (888) 750-5834 (toll-free)
or 1-212-750-5833 (international collect)
Page 12 of 19
EXHIBIT (A)(39)
Page 13 of 19
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QUESTIONS AND ANSWERS FOR THE SHAREHOLDERS OF ENDESA
DURING THE LAST WEEKS, DUKE ENERGY HAS RECEIVED A LOT OF INTERESTING QUESTIONS.
HERE WE GIVE THE ANSWERS.
1. WHY IS IT CONVENIENT FOR ME TO APPROVE THE MODIFICATION OF THE BY-LAWS TO
INCREASE THE CONCENTRATION LIMIT FROM 26% TO 65%?
Because by modifying the threshold we create a real possibility that
there may exist an investor that can acquire at least 51% of the shares
and have a controlling interest in the company. This would make it more
likely that you could realize a "control premium" for your shares.
Increasing the concentration limit to 65% instead of just 51% is
important because it would leave a margin for additional investments by
a controlling shareholder, either by making additional direct
investments in the company or purchasing additional shares in the
market.
It is good for Endesa that there exist a qualified controller because
this would allow for the expansion and growth of Endesa during the
forthcoming years.
The current by-laws date back to the 1980s when Endesa was
privatized. Today, very few companies in Chile or abroad maintain such
a low concentration limit percentage, which turns large investors away
and therefore tends to depress the price per share of the stock.
2. WHY SHOULD I WANT TO APPROVE THE CONCENTRATION AMENDMENT IF I DO NOT
INTEND TO SELL MY SHARES?
Approving this modification does not mean that you have to sell. Your
approval merely opens a door so that investors such as DUKE ENERGY may
purchase shares from those stockholders who do wish to sell. If the
proposed increase in the concentration limit is approved, you will have
the choice of selling your shares at an attractive price to DUKE ENERGY
or another large investor or holding them.
3. WHY IS IT CONVENIENT TO SELL MY SHARES?
The purchase offer of DUKE ENERGY is $250 per share, 43% higher than
the average price per share for the period July 1998 through January
1999. The average price for your shares in the last six months of 1998
and in January of 1999 was $174 per share. On February 17, 1999, the
day prior to DUKE ENERGY's announcement of its purchase offer, the
closing share price was $211 per share.
Page 14 of 19
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4. COULD I GIVE MY CONSENT BY EXECUTING A PROXY LETTER IN FAVOR OF A
CHILEAN WHO IS INDEPENDENT FROM DUKE?
If you name a person in your proxy other than the three individuals
recommended by DUKE ENERGY, there may be no assurance that that person
will vote in favor of the amendment. Additionally, Chilean law
establishes that no shareholder or person related to it may vote in a
shareholders meeting shares exceeding the concentration limit.
Therefore, the proxies granted to persons related to Enersis probably
cannot be used to vote in favor of raising the concentration limit.
The three individuals recommended by DUKE ENERGY- Messrs. Bruce Andre
Williamson, Peter Joseph Wilt and Jaime Irarrazabal C.- are serious
professionals who will carry on your mandate to approve the amendment.
Mr. Jaime Irarrazabal C., is both a well-respected lawyer in Santiago
and a Chilean national.
5. WHAT IS THE DIVIDEND POLICY OF DUKE ENERGY?
DUKE ENERGY was formed by the merger of Duke Power and Pan Energy in
1997. Duke Power had paid a dividend on its common shares for 70
consecutive years prior to the merger. DUKE ENERGY has continued this
dividend payment tradition. Following the consummation of the offer to
purchase Endesa Chile, DUKE ENERGY intends to support a dividend policy
of Endesa Chile that is consistent with the growth objectives of that
company. Endesa's growth will increase the likelihood of greater
dividends to all shareholders.
6. WHY IS DUKE ENERGY INTERNATIONAL THE RIGHT CONTROLLING PARTNER FOR
ENDESA CHILE?
- Duke Energy is a very successful and respected global company,
having been ranked by London's Financial Times in 1998 as the
world's most respected utility and by Fortune Magazine as
America's Most Admired electric and gas utility in 1999.
- With assets of US$26 billion (approximately six times the size of
Endesa Chile), Duke Energy is one of the top 10 energy companies
in the world, having great financial and technical strength.
- Duke Energy has expertise in power generation and global
operations. Duke Energy owns, operates or has an interest in
hydroelectric and thermal plants totaling approximately 30,000 MW
of electric generation capacity around the world and operates in
50 countries.
- Duke Energy International believes in Endesa, its managers and
employees.
Page 15 of 19
<PAGE>
- Duke Energy International is committed to employ Endesa and the
Santiago headquarters as its business platform for electric
generation investments and growth throughout South America.
7. IS THERE ANY ADVANTAGE TO HAVING ENDESA UNDER THE MAJORITY CONTROL OF A
FOREIGN COMPANY?
What is important is whether the controller can make the company grow
by providing the financial support and the crucial technical and
operational experience to make possible more profitable projects in the
highly competitive modern energy business. DUKE ENERGY is a global
energy company with strong technical and operational experience. It has
been in business for 100 years, having accumulated great experience and
financial and technical strength.
Chile needs foreign capital to grow. Even though the controlling
stockholder will be a foreign company, the corporate headquarters of
Endesa will remain in Santiago and will be the platform for Duke
Energy's electric generation investment in South America. Endesa's
growth will create new jobs for Chileans and bring additional foreign
investment to Chile.
8. WHAT IS THE POSITION OF THE BOARD OF DIRECTORS OF ENDESA REGARDING THE
BYLAWS AMENDMENT?
The Board of Directors of Endesa has not taken any position in regard
to the concentration amendment so far.
9. WILL THE SHARES THAT I DON'T SELL BE DEVALUATED?
Not necessarily, because by having only one controller coming in with
financial standing, experience in the electrical sector and creative
capacity, Endesa will be in the best position to grow and expand. Also,
because Duke has only offered to purchase 51% of Endesa, there should
be a liquid trading market for the remaining shares.
10. COULD THE WORKERS OF ENDESA BE HARMED BY THIS MODIFICATION?
No. This modification will have no impact on Endesa's employees. In
fact, with Duke Energy International's growth plans and financial
strength, workers of Endesa may have more opportunity in the future.
Page 16 of 19
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11. IS THERE ANY COST FOR SELLING MY SHARES, ANY COMMISSION?
If Duke is the purchaser of your shares, no costs or commissions will
be charged to you.
Due to the forthcoming Shareholders Extraordinary Meeting to be held on April
08th, we have sent to all the shareholders of the Empresa Nacional de
Electricidad S.A. a proxy-letter with information about Duke Energy.
If you have not received this information, call us or visit us, from Monday to
Friday, from 9.00 hr. to 18.00 hr., in:
Santo Domingo 1141, Piso 5, Santiago
Fono: 671.0910
Luis Thayer Ojeda 0130, Of. 311, Providencia
Fono: 365.1747
Information in Spanish about our offer to purchase shares of Endesa can be
located in: www.duke-energy.com/soamer
Page 17 of 19
EXHIBIT (A)(40)
Page 18 of 19
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TO HAVE A CHILE FULL OF ENERGY PUT YOURSELF IN ACTION AND
VOTE! TO INCREASE THE SHAREHOLDERS CONCENTRATION LIMIT FROM
26% TO 65%, PLEASE VOTE FAVORABLY TO CHANGE ENDESA'S BY-LAWS.
Benefits for you:
If you vote in favor of increasing the shareholders concentration limit, you
will have the option - but not the requirement - to sell your shares
conveniently to DEI for $250 per share.
Benefits for Endesa:
The company will have a strong controlling partner to become Chile's and South
America's premiere energy company.
Only by getting 75% of the shareholders to vote "yes" will the by-laws be
changed. Not voting is the same as voting "no". Therefore, please vote
favorably.
DUKE ENERGY INTERNATIONAL
(logo)
Page 19 of 19
