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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. 3
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
NY2:\320614\02\6VDY02!.DOC\42615.0005
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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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2
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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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3
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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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4
<PAGE>
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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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5
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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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6
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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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7
<PAGE>
This Amendment No. 3 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
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Exhibit (f)(2) Slide presentation to analysts on March 10, 1999.
<PAGE>
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 10, 1999
DUKE ENERGY INTERNATIONAL, L.L.C.
By: /S/ BRUCE A. WILLIAMSON
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
Name: Bruce A. Williamson
Title: Authorized person
<PAGE>
EXHIBIT INDEX
Description
Exhibit Number Description
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(f)(2) Slide presentation to analysts on March 10, 1999.
<PAGE>
Exhibit (f)(2)
<PAGE>
[DUKE ENERGY LOGO]
Duke Energy International
Endesa-Chile
Bruce Williamson
President & CEO
March 10, 1999
<PAGE>
[DUKE ENERGY LOGO]
Why Invest Internationally?
Maintain growth investment cycle over long-term
Replicate and re-deploy corporate skill sets to create competitive advantage
Electric and gas Commercial focus
Engineering Trading and risk management
Re-leverage the trading and risk control system investments and risk management
culture
Leverage into different investment time patterns of deregulation and
free market development
<PAGE>
[DUKE ENERGY LOGO]
DEI Strategy
Endesa - Chile Duke Energy International
Initial Positioning Follow-on Investment Energy Arbitrage
Establish initial asset Leverage initial assets Trade and arbitrage
positions within in areas to develop synergies of energy and between
with high potential economic operations clusters of assets
and infrastructure growth
Complementary Risk management
Strategically
positioned Synergistic Energy trading and
Low volatility Operations marketing culture
Technical
Predictable Commercial
Financial
Resilient Tax
<PAGE>
[DUKE ENERGY LOGO]
Endesa-Chile Tender Offer
Acquire, through an all cash offer, a controlling stake in Endesa-Chile
Secure Board control at Endesa-Chile level
Via tender offer for 51% of outstanding shares in Endesa-Chile
Subject to, among other things, Endesa-Chile shareholder approval to increase
single shareholder ownership limitation to 65%
<PAGE>
[DUKE ENERGY LOGO]
South American Vision
Energy Supply
[GRAPH]
Market Characteristics & Drivers
Huge market
Regional trading block established
Recent democratization followed
by internationalization of local
markets
Competition intensifying
Pace of change accelerating
Energy Demand
<PAGE>
[DUKE ENERGY LOGO]
Endesa-Chile Overview
Control and operate 10,247 MW of Growth in Controlled Capacity
installed capacity (5,893 MW net ownership)
Capacity controlled by Endesa-Chile has
quadrupled between 1991 and 1997 [GRAPH]
A leading position in each of its markets except for
Brazil
<PAGE>
DUKE ENERGY LOGO]
Asset Description
Duke Assets
Endesa-Chile Assets
Endesa - Chile
Argentina: Costanera 1,140 MW
(thermal), CBA 320 MW
(thermal), El Chocon 1,320 MW
(hydro)
Duke Energy [M A P]
Brazil: Cachoeira Dourada 658
Argentina: Piedra del Aguila 1,400 MW MW (hydro), Argentina - Brazil
Elec. Trans. (2,000 MW)
Chile: Nueva Renca 370 MW Chile: 3,000 MW (2,674 hydro, 326
Thermal), 560 mi Argentina -
Ecuador: Electroquil 168 MW Chile Gas Trans. Line (Atacama)
Peru: Blocks 85, 40, 41 (E&P), Colombia: Betania 540 MW
Aguaytia (125 mi. Gas Trans. and 245 (Hydro/Thermal), Emgesa 2,458
mi. Elec Trans and 155 MW) MW (Hydro)
Peru: Edegel 809 MW (five
hydro, one thermal)
<PAGE>
[DUKE ENERGY LOGO]
Valuation Methodology Overview*
Discounted Cash Comparable Comparable
Flow Analysis Company Analysis Transaction Analysis
Net Present Value "Public" Market Value "Private" Market Value
Projected unlevered free No control premium Values based on latest
cash flows 12-month multiples paid
Reflects current for comparable companies
"Inherent" value of business liquidity and assets in private
transactions
Based on trading
value of comparable
companies relative
to underlying
benchmarks
Reference Range
Emphasis on Discounted Cash Flow Analysis
Consideration given to other measures
* Based on publicly available data
<PAGE>
[DUKE ENERGY LOGO]
Basic Economic Assumptions*
Valuation predicated on initial 5 year economic evaluation vs. historical
earnings growth projection
Moderate forward price outlook evaluated on a country specific basis
Known contract changes factored into valuation
98 earnings announcement has minimal impact on 99 forecast
Maintain market share in a 4% growth market beyond first five years
Capital expenditure levels are in accordance with Endesa-Chile's publicly stated
growth plans
* These assumptions involve predictions of future events, some of which are
beyond Duke's control and are inherently uncertain. No assurances can be given
that these assumption will prove to be correct.
<PAGE>
[DUKE ENERGY LOGO]
Duke - Endesa: The Future
Additional power assets
Brazilian privatizations
Re-traded portfolios
Gas-fired greenfield assets
Additional "connectivity" assets
Electric transmission between countries
Gas pipelines and integrated gas projects
Implementation of energy arbitrage
Time Financial products
Form Risk management
Location
<PAGE>
[DUKE ENERGY LOGO]
Timeline
Feb 18 Announcement of Endesa-Chile United States and Chilean tender offers
Feb 25 SEC Schedule 14D-1 filed; tender offer commences
Apr 8 Endesa-Chile shareholder meeting to increase concentration limits
to 65%
Apr 9 Initial expiration date for Duke's U.S. tender offer
Early May Chilean remate
TBD Duke Energy financial closing (within 24 hours after remate)
