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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. 10
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 15)
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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 15
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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 15
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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 15
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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 15
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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 15
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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 15
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This Amendment No. 10 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)(32) Opening remarks of Bruce A. Williamson at press conference
held in Chile on February 25, 1999.
Exhibit (a)(33) English translation of Purchaser's open letter to
Endesa-Chile employees, made available at news conference in
Chile on March 24, 1999, and published in Chilean newspapers
on March 26 and March 28, 1999.
Page 8 of 15
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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 24, 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 15
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EXHIBIT INDEX
EXHIBIT NUMBER DESCRIPTION
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Exhibit (a)(32) Opening remarks of Bruce A. Williamson at press conference
held in Chile on February 25, 1999.
Exhibit (a)(33) English Translation of Purchaser's open letter to
Endesa-Chile employees, made available at news conference in
Chile on March 24, 1999, and published in Chilean newspapers
on March 26 and March 28, 1999.
Page 10 of 15
EXHIBIT (A)(32)
Page 11 of 15
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Duke Energy International Press Conference
FEBRUARY 25, 1999
Comments by Bruce Williamson
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Good afternoon, and thank you for joining us today in Santiago. There has been a
lot of coverage of Duke in the past week, and one of our major points is how we
want to come into the Chilean business community in a spirit of open and clear
communications of our objectives and intent. Therefore, we thought that perhaps
it was best today to simply offer a forum for everyone to hear where we are in
the process and to ask any questions you might have.
But first, let me say a few words.
One week ago, Duke Energy International announced its intent to seek a
controlling interest in Endesa-Chile through a tender offer in both Chile and
the United States.
Today, Duke Energy International has initiated the process, both in Chile and in
the United States, to implement the tender offers to acquire 51 percent of the
shares of Endesa-Chile. This tender offer is conditioned on the amendment of
Endesa-Chile's share concentration limit to allow a single shareholder, or group
of shareholders, to hold up to 65 percent of the company's total shares. As we
said in our statement a week ago, our tender offer is for 51 percent of Endesa,
at a price of 250 pesos per Chilean share and a corresponding equal price for
United States American Depository Shares which represent 30 shares of Endesa.
We believe that our offer represents fair value and is equitable to all
shareholders. All shareholders will be able to participate equally in the tender
offers, as the offers will be implemented on a pro-rata basis. Fairness will be
preserved through this open and transparent process.
Upon the successful completion of the tender offers, Endesa-Chile will become
Duke Energy International's platform for expansion throughout Latin America.
Endesa-Chile's efficient management style combined with Duke Energy's financial
strength will help to ensure Endesa-Chile's growth and profitability, providing
value and growth for all shareholders of Endesa-Chile.
The Duke Energy International offer for Endesa-Chile is independent from any
other transaction or offer. I would hope that the shareholders of Endesa-Chile,
both large and small, would look at our offer, the pricing, the terms and
conditions and evaluate it. I am confident that when they do, they will conclude
we have offered a fair value for Endesa-Chile. I am also confident that they
will welcome the Duke style of business and the transparency and the equality we
are seeking as we grow an energy business which will reach all across South
America and will be headquartered in Santiago.
Page 12 of 15
EXHIBIT (A)(33)
Page 13 of 15
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An Open Letter to the Employees of Empresa Nacional de Electricidad S. A.
(Endesa)
We wanted to write to you about Duke Energy International's tender offer for
Endesa. This letter seems the best way to reach as many Endesa employees as
possible.
First, let me say that we know how difficult it is to operate with an uncertain
future. The series of events that have unfolded over the last few weeks must be
very difficult for you and your families. Every day you hear something new about
your company that raises new questions and new doubts. Prolonged uncertainty
hurts everyone. Employees can't plan for their futures. Customers may lose
confidence in the company. Everyone is distracted as the daily events impact the
business.
That's one reason why we'd like your support for Duke Energy's tender offer. We
can end the uncertainty that clouds Endesa's future and together, start building
the premiere energy company in Latin America. And, while other countries in
South America are faced with a variety of economic problems, Duke Energy
International's major investment in Endesa and Chile provide the financial
strength to immediately begin down a path of growth and new opportunities.
DUKE ENERGY INTERNATIONAL IS THE RIGHT CONTROLLER FOR ENDESA
We believe the combination of Endesa and Duke Energy International is
unbeatable. Here's why:
o Our expertise, skills and resources are a good fit. Both Endesa and Duke
Energy International have outstanding reputations for excellence in power
generation. Endesa's operations and experience in South America provide a
strong platform for expansion. Duke Energy International brings to the
table its long experience in owning and operating power plants, along with
expertise in natural gas and trading & marketing. These skills will be
essential to succeed in a competitive Latin American energy industry.
o Duke Energy International is making a long-term commitment to Endesa. Duke
is committed to making Endesa its vehicle for investment in electricity
generation in South America. That would make Endesa and Chile the base of
our South American operations.
o Duke Energy International has the highest regard for the management and
employees of Endesa. We respect your expertise.
o Duke Energy International has the financial strength, vision and
reputation to be the world's premiere energy company. That translates to
growth and opportunity for Endesa and its employees.
Page 14 of 15
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o Duke Energy International is committed to integrity in all of its
operations. In a survey by the Financial Times, Duke Energy was named the
world's most respected utility. Fortune magazine has named Duke Energy
"America's Most Admired" electric and gas company. In our business dealings
in Chile, we have set high standards for transparency and have strictly
complied with all local laws and regulations. The commitment to ethical
business practices is one of Duke Energy International's core values
everywhere in the world we operate.
o Duke Energy International's tender offer is fairly priced. It represents a
significant premium over the average price Endesa stock was selling for
prior to Duke Energy International's tender offer.
o Duke Energy International's offer is equal for all shareholders. All
shareholders, regardless of size, have the opportunity to participate in
this tender offer at the same share price. Following consummation of the
offer, Duke Energy International intends to seek majority representation on
the Endesa's board of directors. We believe that Endesa's institutional and
minority shareholders should also be represented on the board of directors,
consistent with their level of ownership.
We invite you to join us in building Chile's and South America's premiere energy
company. For those of you who own shares of Endesa, we request that you do two
things:
o VOTE YOUR PROXY by April 8 to increase the ownership concentration limits
from 26% to 65%.
o TENDER YOUR SHARES in accordance with the instructions set forth in the
information from Banchile.
Thank you for welcoming Duke Energy International so warmly. With your support,
together we - Endesa and Duke Energy International -- can look forward to a
future of opportunity and growth.
Sincerely,
Bruce A. Williamson
President and Chief Executive Officer
Page 15 of 15
