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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. 7
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 16)
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NY2:\377021\01\82WT01!.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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Page 2 of 16
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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 16
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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
- --------------------------------------------------------------------------------
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 16
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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
- --------------------------------------------------------------------------------
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 16
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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
- --------------------------------------------------------------------------------
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 16
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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 16
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This Amendment No. 7 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 (a)(25) Letter from Bruce A. Williamson to non-Chilean Endesa
shareholders.
Exhibit (a)(26) Script for use by Duke Energy executives in connection with
meetings with institutional shareholders of Endesa.
Exhibit (a)(27) English translation of advertisement by Banchile to be
published in El Mercurio on March 22, 1999.
Page 8 of 16
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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 19, 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 9 of 16
<PAGE>
EXHIBIT INDEX
EXHIBIT
NUMBER DESCRIPTION
- ------ -----------
(a)(25) Letter from Bruce A. Williamson to non-Chilean Endesa
shareholders.
(a)(26) Script for use by Duke Energy executives in connection with
meetings with institutional shareholders of Endesa.
(a)(27) English translation of advertisement by Banchile to be
published in El Mercurio on March 22, 1999.
Page 10 of 16
EXHIBIT (A)(25)
Page 11 of 16
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[DUKE ENERGY INTERNATIONAL LOGO]
March 18, 1999
Dear Endesa Shareholder:
On February 25, 1999, Duke Energy International, L.L.C., commenced an offer to
purchase up to 501,947,400 common shares (including common shares represented by
American Depositary Shares) of Empresa Nacional de Electricidad S.A. ("Endesa")
at 250 Chilean pesos net per share (or 7,500 Chilean pesos per ADS, each of
which represents 30 shares of common stock of Endesa). THIS REPRESENTS A PREMIUM
OF APPROXIMATELY 48% OVER THE AVERAGE PRICE OF ENDESA SHARES ON THE SANTIAGO
STOCK EXCHANGE FOR THE SIX MONTHS PRIOR TO DUKE ENERGY'S ANNOUNCEMENT OF ITS
OFFER.
The Offer is only open to U.S. and other non-Chilean holders of Endesa ADSs and
Endesa shares. At the same time, Duke Energy is making an Offer in Chile (which
is only open to Chilean persons) for up to 3,680,947,436 Endesa shares at the
same price as in the U.S. Offer. Although Duke Energy believes that the Offer is
an attractive opportunity for Endesa shareholders, you should be aware that the
Offer cannot be consummated without the approval of a proposed amendment to
Endesa's bylaws, which would raise the limitation on share ownership from 26% to
65%. Endesa has called an Extraordinary Shareholders meeting for April 8, 1999
to vote on the proposed amendment. TO PRESERVE YOUR OPPORTUNITY TO PARTICIPATE
IN THE DUKE OFFER, WE URGE YOU TO SIGN, DATE AND RETURN THE ENCLOSED FORM OF
PROXY TODAY, VOTING FOR THE BYLAW AMENDMENT.
Approval of the proposed amendment does not obligate you in any way to tender
your shares to Duke. SINCE THE PROPOSED AMENDMENT REQUIRES THE AFFIRMATIVE VOTE
OF 75% OF ENDESA'S OUTSTANDING SHARES, YOUR VOTE IS EXTREMELY IMPORTANT.
I urge you to protect the value of your investment by voting FOR the proposed
bylaw amendment. PLEASE CHECK THE FOR BOX ON THE ENCLOSED FORM OF PROXY AND MAIL
IT TODAY.
Thank you for your consideration and support.
Sincerely,
BRUCE A. WILLIAMSON
President
Duke Energy International L.L.C.
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IMPORTANT: MAKE SURE YOUR VOTE IS COUNTED!
Your bank or broker must deliver your vote to Citibank, N.A., the ADS
depositary, no later than 10:00 AM, EST, Tuesday, April 6, 1999, Citibank's
deadline. THEREFORE 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 ASSISTANCE IN VOTING YOUR SHARES OR ADSS,
PLEASE CONTACT INNISFREE M&A INCORPORATED, WHICH IS ASSISTING US, AT (888)
750-5834 (TOLL-FREE).
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Page 12 of 16
EXHIBIT (A)(26)
Page 13 of 16
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TALKING POINTS FOR LARGE INSTITUTIONAL INVESTOR DISCUSSIONS
RE: ENDESA- CHILE TENDER OFFER
Note: Some of the talking points will not be necessary for those already
familiar with Duke Energy.
o Duke Energy was created June 18, 1997 as a result of the merger of Duke
Power Company and PanEnergy Corporation.
o Duke Energy was named the world's most respected utility in a survey by the
Financial Times and Fortune magazine has named Duke Energy "America's Most
Admired" electric and gas company.
o Wall Street has called Duke energy the "First Mover" in the convergence of
gas and electricity.
o Duke Energy International's (DEI) strategy is to build regional energy
businesses with multiple business lines across the value chain.
o DEI's strategy is to focus on locations with a deregulating governmental
framework; specifically, we are currently targeting the Asia/Pacific area,
South America and Europe.
o DEI currently owns assets in Australia, Indonesia, Saudi Arabia, Chile,
Argentina, Peru and Ecuador.
o An example of our strategy being applied in South America is the Aguaytia
Energy Project in Peru. It began commercial operations in 1998 and is a
fully integrated natural gas and electric system - it will serve as a model
for how similar projects will be developed going forward.
o Our current offer is to acquire a controlling stake in Endesa-Chile via a
tender offer for 51% of the outstanding shares.
o Endesa-Chile provides a strong platform for expansion that is consistent
with our strategy.
o Duke brings experience of owning and operating power plants along with
expertise in trading and marketing that will be essential in the evolving
competitive environment
o This offer is a long term commitment to the company and the country and
Endesa-Chile would become our base for all Latin American operations.
o Duke has the highest regard for the management of Endesa-Chile.
o The offer we have made is fairly priced and represents about a 48% premium
over the average share price of the last six months.
Page 14 of 16
EXHIBIT (A)(27)
Page 15 of 16
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ENGLISH TRANSLATION
SHAREHOLDERS OF ENDESA
Duke Energy International L.L.C. has stated its intent to acquire 51% of the
shares of Endesa. To this end, it has offered to buy in Chile, from Chilean
shareholders, a total of 3,680,947,436 shares at a price of
[CH]$250 PER SHARE
This price represents a premium of
45.8% over the closing price on December 31, 1998
34.4% over the average price during 1999 (*)
54.0% over the average price during the last six months (*)
(*) To February 17, 1999, the day prior to Duke's
announcement of its intent to take control of Endesa.
IF YOU ALREADY TOOK THE DECISION OF PARTICIPATING IN THIS OFFER, WE INVITE YOU
TO COME TO MONEDA 877 OR TO THE OFFICES OF BANCHILE AND BANCO DE CHILE
THROUGHOUT THE COUNTRY, TO SIGN YOUR SALE ORDER WITH AS MUCH ANTICIPATION AS
POSSIBLE. THIS WILL ALLOW US TO GIVE YOU AND ALL OTHER SHAREHOLDERS BETTER
SERVICE.
PRORATING SYSTEM
In the event that the total number of shares offered for sale in the remate is
greater than the number offered to buy, the acquisition shall be made pro rata.
This system guarantees equal conditions for all shareholders, irrespective of
the number of shares owned by them.
For more information, call 800 20 28 20 or visit us at www.banchile.cl.
Duke Energy International Logo Banchile Corredores de Bolsa Logo
Page 16 of 16
