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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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RULE 13E-3 TRANSACTION STATEMENT
(AMENDMENT NO. 1)
(Pursuant to Section 13(e) of the Securities Exchange Act of 1934)
ILLINOIS POWER COMPANY
(Name of the Issuer)
ILLINOVA CORPORATION
(Name of Person Filing Statement)
<TABLE>
<CAPTION>
TITLE CUSIP NUMBER
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<S> <C>
CUMULATIVE PREFERRED STOCK ($50 PAR VALUE)
4.08% SERIES 452092 20 8
4.20% SERIES 452092 30 7
4.26% SERIES 452092 40 6
4.42% SERIES 452092 50 5
4.70% SERIES 452092 60 4
7.75% SERIES 452092 79 4
</TABLE>
(Title and CUSIP Number of Class of Securities)
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LEAH MANNING STETZNER, ESQ.
GENERAL COUNSEL AND CORPORATE SECRETARY
ILLINOVA CORPORATION
500 S. 27TH STREET
DECATUR, IL 62525
(217) 424-6600
with a copy to:
ROBERT J. REGAN, ESQ.
SCHIFF HARDIN & WAITE
7200 SEARS TOWER
CHICAGO, ILLINOIS 60616
(312) 258-5606
(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications on Behalf of the Person Filing Statement)
This statement is filed in connection with (check the appropriate box):
a. [X] The filing of solicitation materials or an information statement subject
to Regulation 14A, Regulation 14C or Rule 13e-3(c) under the Securities
Exchange Act of 1934.
b. [ ] The filing of a registration statement under the Securities Act of 1933.
c. [X] A tender offer.
d. [ ] None of the above.
Check the following box if the soliciting materials or information statement
referred to in checking box (a) are preliminary copies: [X]
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CALCULATION OF FILING FEE
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TRANSACTION VALUATION* AMOUNT OF FILING FEE
<S> <C>
$52,607,718.80 $10,521.54
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</TABLE>
* Solely for purposes of calculating the filing fee and computed pursuant to
Section 13(e)(3) of the Securities Exchange Act of 1934, as amended, and
Rule 0-11(b)(1) thereunder, the transaction value equals the total
amount of funds, excluding fees and other expenses, required to purchase
all outstanding shares of each class of securities listed above pursuant to
the Offer described in the Offer to Purchase and Proxy Statement referenced
in Item 17(d)(1) herein. The purchase price per share for the outstanding
shares will be based on a formula utilizing the 30-year Treasury Bond rate
(except that the 5-year Treasury Bond rate will be used with respect to the
7.75% Series) at the commencement of the Offer. The above transaction value
is based on the formula utilizing the 30-year and 5-year Treasury Bond
rates as of February 25, 1998. Any adjustments to the filing fee will be
made upon filing an Amendment to this Schedule 13E-3 upon commencement of
the Offer.
[X] Check box if any part of the fee is offset as provided by Rule 0-11(a)(2)
and identify the filing with which the offsetting fee was previously paid.
Identify the previous filing by registration statement number, or the form
or schedule and the date of its filing.
<TABLE>
<S> <C>
Amount Previously Paid: $10,521.54 Filing Party: Illinova Corporation
Form or Registration No.: Schedule 13E-4 Date Filed: March 3, 1998
</TABLE>
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This Rule 13e-3 Transaction Statement (the "Statement") relates to the
offer by Illinova Corporation, an Illinois corporation ("ILN"), pursuant to its
Offer to Purchase and Proxy Statement, dated , 1998 (the
"Offer to Purchase and Proxy Statement"), to purchase any and all of the
outstanding shares of each of the following series of the Cumulative Preferred
Stock, $50 par value (each a "Series of Preferred"), of Illinois Power Company,
an Illinois corporation and direct subsidiary of ILN ("IPC"):
4.08% Series of Preferred, at a purchase price of $ per share,
net to the seller in cash;
4.20% Series of Preferred, at a purchase price of $ per share,
net to the seller in cash;
4.26% Series of Preferred, at a purchase price of $ per share,
net to the seller in cash;
4.42% Series of Preferred, at a purchase price of $ per share,
net to the seller in cash;
4.70% Series of Preferred, at a purchase price of $ per share,
net to the seller in cash; and
7.75% Series of Preferred, at a purchase price of $ per share,
net to the seller in cash.
There is a separate Letter of Transmittal and Proxy with respect to each
Series of Preferred.
The cross reference sheet below is being supplied pursuant to General
Instruction F to Schedule 13E-3 and shows the location of the information
required to be included in response to the items of this Statement in the Issuer
Tender Offer Statement on Schedule 13E-4 (the "Schedule 13E-4") filed by ILN
with the Securities and Exchange Commission (the "Commission") on the date
hereof. The information set forth in the Schedule 13E-4 is expressly
incorporated herein by reference and responses to each item herein are qualified
in their entirety by the corresponding responses in the Schedule 13E-4.
<TABLE>
<CAPTION>
LOCATION OF ITEM IN SCHEDULE 13E-3 SCHEDULE 13E-4
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<S> <C>
Item 1(a)................................................... Item 1(a)
Item 1(b)................................................... Item 1(b)
Item 1(c)................................................... Item 1(c)
Item 1(d)................................................... *
Item 1(e)................................................... *
Item 1(f)................................................... *
Item 2(a)................................................... *
Item 2(b)................................................... *
Item 2(c)................................................... *
Item 2(d)................................................... *
Item 2(e)................................................... *
Item 2(f)................................................... *
Item 2(g)................................................... *
Item 3(a)(1)................................................ *
Item 3(a)(2)................................................ *
Item 3(b)................................................... *
Item 4(a)................................................... *
Item 4(b)................................................... *
Item 5(a)................................................... Item 3(b)
Item 5(b)................................................... Item 3(c)
Item 5(c)................................................... Item 3(d)
Item 5(d)................................................... Item 3(e)
Item 5(e)................................................... Item 3(f)
</TABLE>
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<TABLE>
<CAPTION>
LOCATION OF ITEM IN SCHEDULE 13E-3 SCHEDULE 13E-4
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<S> <C>
Item 5(f)................................................... Item 3(i)
Item 5(g)................................................... Item 3(j)
Item 6(a)................................................... Item 2(a)
Item 6(b)................................................... *
Item 6(c)................................................... Item 2(b)
Item 6(d)................................................... *
Item 7(a)................................................... Item 3
Item 7(b)................................................... *
Item 7(c)................................................... *
Item 7(d)................................................... *
Item 8(a)................................................... *
Item 8(b)................................................... *
Item 8(c)................................................... *
Item 8(d)................................................... *
Item 8(e)................................................... *
Item 8(f)................................................... *
Item 9(a)................................................... *
Item 9(b)................................................... *
Item 9(c)................................................... *
Item 10(a).................................................. *
Item 10(b).................................................. *
Item 11..................................................... Item 5
Item 12(a).................................................. *
Item 12(b).................................................. *
Item 13(a).................................................. *
Item 13(b).................................................. *
Item 13(c).................................................. *
Item 14(a).................................................. Item 7(a)
Item 14(b).................................................. Item 7(b)
Item 15(a).................................................. *
Item 15(b).................................................. Item 6
Item 16..................................................... Item 8(e)
Item 17(a).................................................. Item 9(b)
Item 17(b).................................................. *
Item 17(c).................................................. Item 9(c)
Item 17(d).................................................. Item 9(a)
Item 17(e).................................................. *
Item 17(f).................................................. Item 9(f)
</TABLE>
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* The Item is located in the Schedule 13E-3 only.
ITEM 1. ISSUER AND CLASS OF SECURITY SUBJECT TO THE TRANSACTION.
(a) The name of the Issuer is Illinois Power Company, an Illinois
corporation ("IPC"), that has its principal executive offices at 500 S. 27th
Street, Decatur, IL 62525.
(b) The information appearing on the front cover of the Offer to Purchase
and Proxy Statement, filed as Exhibit 99(a)(1) to the Schedule 13E-4 (the "Offer
to Purchase and Proxy Statement"), and the information appearing under the
captions "Terms of the Offer -- Number of Shares; Purchase Prices; Expiration
Date; Dividends," "Price Range of Shares; Dividends" and "Transactions and
Agreements Concerning the Shares" in the Offer to Purchase and Proxy Statement
is incorporated herein by reference pursuant to General Instruction D to
Schedule 13E-3.
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(c)-(d) The information appearing under the caption "Price Range of Shares;
Dividends" in the Offer to Purchase and Proxy Statement is incorporated herein
by reference pursuant to General Instruction D to Schedule 13E-3.
(e) Not applicable.
(f) IPC purchased Shares on the open market on the dates and at the prices
shown below in fiscal 1996 and 1997.
<TABLE>
<CAPTION>
NUMBER OF RANGE OF PURCHASE PRICES AVERAGE PURCHASE
SERIES FISCAL QUARTER SHARES (HIGH/LOW) PRICE PER SHARE
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<C> <S> <C> <C> <C>
4.08% 3rd Quarter 1997 16,710 $36.520/$35.000 $35.606
4.20% 3rd Quarter 1997 12,280 37.590/34.841 35.762
4.26% 3rd Quarter 1997 14,000 36.059/36.059 36.059
4.42% 3rd Quarter 1997 15,600 37.413/37.413 37.413
4.70% 3rd Quarter 1997 24,000 38.989/38.989 38.989
7.75% 3rd Quarter 1996 135,100 52.750/52.125 52.421
</TABLE>
ITEM 2. IDENTITY AND BACKGROUND.
(a)-(d), (g) The person filing this statement is Illinova Corporation, an
Illinois corporation ("ILN") that has its principal executive offices at 500 S.
27th Street, Decatur, IL 62525. ILN is a holding company which owns all of the
outstanding common stock of IPC. Certain information relating to ILN's directors
and executive officers set forth in (i) ILN's Annual Report on Form 10-K for the
year ended December 31, 1997 and (ii) ILN's Definitive Proxy Statement on
Schedule 14A, dated March 10, 1998, referenced herein as Exhibits (g)(3) and
(g)(4), respectively, is incorporated herein by reference pursuant to General
Instruction D to Schedule 13E-3.
(e) During the last five years, no executive officer or director of ILN or
IPC or any person controlling ILN or IPC has been convicted in a criminal
proceeding (excluding traffic violations or similar misdemeanors).
(f) During the last five years, no executive officer or director of ILN or
IPC or any person controlling ILN or IPC was a party to a civil proceeding of a
judicial or administrative body of competent jurisdiction and as a result of
such proceeding was or is subject to a judgment, decree or final order enjoining
further violations of, or prohibiting activities, subject to, federal or state
securities laws or finding any violation of such laws.
ITEM 3. PAST CONTRACTS, TRANSACTIONS OR NEGOTIATIONS.
(a) Not applicable.
(b) Not applicable.
ITEM 4. TERMS OF THE TRANSACTION.
(a) The information appearing under the captions "Special Factors --
Purpose of the Offer; Certain Effects of the Offer; Plans of ILN and IPC After
the Offer," and "Terms of the Offer" in the Offer to Purchase and Proxy
Statement is incorporated herein by reference pursuant to General Instruction D
to Schedule 13E-3.
(b) Not applicable.
ITEM 5. PLANS OR PROPOSALS OF THE ISSUER OR AFFILIATE.
(a)-(g) The information appearing under the caption "Special Factors --
Purpose of the Offer; Certain Effects of the Offer; Plans of ILN and IPC After
the Offer" in the Offer to Purchase and Proxy Statement is incorporated herein
by reference pursuant to General Instruction D to Schedule 13E-3.
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ITEM 6. SOURCE AND AMOUNTS OF FUNDS OR OTHER CONSIDERATION.
(a) The information appearing under the caption "Source and Amount of
Funds" in the Offer to Purchase and Proxy Statement is incorporated herein by
reference pursuant to General Instruction D to Schedule 13E-3.
(b) The information appearing under the caption "Fees and Expenses
Associated with the Offer" in the Offer to Purchase and Proxy Statement is
incorporated herein by reference pursuant to General Instruction D to Schedule
13E-3.
(c) The information appearing under the caption "Source and Amount of
Funds" in the Offer to Purchase and Proxy Statement is incorporated herein by
reference pursuant to General Instruction D to Schedule 13E-3.
(d) The information appearing under the caption "Source and Amount of
Funds" in the Offer to Purchase and Proxy Statement is incorporated herein by
reference pursuant to General Instruction D to Schedule 13E-3.
ITEM 7. PURPOSE(S), ALTERNATIVES, REASONS AND EFFECTS.
(a) The information appearing under the caption "Special Factors -- Purpose
of the Offer; Certain Effects of the Offer; Plans of ILN and IPC After the
Offer" in the Offer to Purchase and Proxy Statement is incorporated herein by
reference pursuant to General Instruction D to Schedule 13E-3.
(b) Not applicable.
(c) The information appearing under the captions "Special Factors --
Purpose of the Offer; Certain Effects of the Offer; Plans of ILN and IPC After
the Offer" and "Proposed Amendment and Proxy Solicitation -- Reasons for the
Proposed Amendment" in the Offer to Purchase and Proxy Statement is incorporated
herein by reference pursuant to General Instruction D to Schedule 13E-3.
(d) The information appearing under the captions "Special Factors --
Purpose of the Offer; Certain Effects of the Offer; Liquidity of Trading Market;
Potential Effects of the Proposed Amendment on Non-Tendering Preferred
Shareholders; Plans of ILN and IPC After the Offer," "Price Range of Shares;
Dividends," "Certain Federal Income Tax Consequences" and "Source and Amount of
Funds" in the Offer to Purchase and Proxy Statement is incorporated herein by
reference pursuant to General Instruction D to Schedule 13E-3.
ITEM 8. FAIRNESS OF THE TRANSACTION.
(a)-(b) The information appearing under the caption "Special Factors --
Purpose of the Offer; Certain Effects of the Offer; Plans of ILN and IPC After
the Offer" in the Offer to Purchase and Proxy Statement is incorporated herein
by reference pursuant to General Instruction D to Schedule 13E-3.
(c) The information appearing under the caption "Special Factors -- Certain
Legal Matters; Regulatory Approvals; Dissenters' Rights" in the Offer to
Purchase and Proxy Statement is incorporated herein by reference pursuant to
General Instruction D to Schedule 13E-3.
(d)-(e) The information appearing under the caption "Special Factors --
Purpose of the Offer; Certain Effects of the Offer; Plans of ILN and IPC After
the Offer" in the Offer to Purchase and Proxy Statement is incorporated herein
by reference pursuant to General Instruction D to Schedule 13E-3.
(f) Not applicable.
ITEM 9. REPORTS, OPINIONS, APPRAISALS AND CERTAIN NEGOTIATIONS.
(a) The information appearing under the caption "Special Factors -- Purpose
of the Offer; Certain Effects of the Offer; Plans of ILN and IPC After the
Offer" in the Offer to Purchase and Proxy Statement is incorporated herein by
reference pursuant to General Instruction D to Schedule 13E-3.
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(b) Not applicable.
(c) Not applicable.
ITEM 10. INTEREST IN SECURITIES OF THE ISSUER.
(a)-(b) The information appearing under the captions "Proposed Amendment
and Proxy Solicitation -- Security Ownership of Certain Beneficial Owners and
Management" and "Transactions and Agreements Concerning the Shares" in the Offer
to Purchase and Proxy Statement is incorporated herein by reference pursuant to
General Instruction D to Schedule 13E-3.
ITEM 11. CONTRACTS, ARRANGEMENTS OR UNDERSTANDINGS WITH RESPECT TO THE ISSUER'S
SECURITIES.
The information appearing under the caption "Transactions and Agreements
Concerning the Shares" in the Offer to Purchase and Proxy Statement is
incorporated herein by reference pursuant to General Instruction D to Schedule
13E-3.
ITEM 12. PRESENT INTENTION AND RECOMMENDATION OF CERTAIN PERSONS WITH REGARD TO
THE TRANSACTION.
(a) The information appearing under the caption "Transactions and
Agreements Concerning the Shares" in the Offer to Purchase and Proxy Statement
is incorporated herein by reference pursuant to General Instruction D to
Schedule 13E-3.
(b) Neither ILN nor IPC nor any of their respective directors or executive
officers has made any recommendation in support of or opposed to the Rule 13e-3
transaction.
ITEM 13. OTHER PROVISIONS OF THE TRANSACTION.
(a) The information appearing under the captions "Special Factors --
Certain Legal Matters; Regulatory Approvals; Dissenters' Rights" and "Proposed
Amendment and Proxy Solicitation -- Voting Securities, Rights and Procedures" in
the Offer to Purchase and Proxy Statement is incorporated herein by reference
pursuant to General Instruction D to Section 13E-3.
(b) Not applicable.
(c) Not applicable.
ITEM 14. FINANCIAL INFORMATION.
(a) The information appearing (i) under the caption "Summary of
Consolidated Financial Information" in the Offer to Purchase and Proxy Statement
and (ii) in the financial statements of IPC included in the Annual Report on
Form 10-K for the year ended December 31, 1997 referenced herein as Exhibit
(g)(2), is incorporated herein by reference pursuant to General Instruction D to
Schedule 13E-3.
(b) Not applicable.
ITEM 15. PERSONS AND ASSETS EMPLOYED, RETAINED OR UTILIZED.
(a) The officers and employees of IPC will perform tasks which would be
expected to arise in connection with the transaction.
(b) The information appearing under the caption "Fees and Expenses
Associated with the Offer" in the Offer to Purchase and Proxy Statement is
incorporated herein by reference pursuant to General Instruction D to Schedule
13E-3.
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ITEM 16. ADDITIONAL INFORMATION.
Reference is hereby made to the Offer to Purchase and Proxy Statement and
Letter of Transmittal and Proxy, which are referenced herein as Exhibits (d)(1)
and (d)(2), respectively, and incorporated in their entirety herein by reference
pursuant to General Instruction D to Schedule 13E-3.
ITEM 17. MATERIAL TO BE FILED AS EXHIBITS.
(a) Credit Agreement, dated as of June 12, 1996, as amended on June 28,
1996, among ILN, CIBC Inc., as Administrative Agent, The First National Bank of
Chicago, Bank of America Illinois, The First National Bank of Boston, Bank of
Montreal, The Fuji Bank, Limited, ABN AMRO Bank N.V. Chicago Branch, The Bank of
New York and Deutsche Bank A.G. New York Branch and/or Cayman Islands Branch,
incorporated by reference to Exhibit 99(b) to Schedule 13E-4.
(b) Not applicable.
(c) Not applicable.
(d)(1) Offer to Purchase and Proxy Statement, dated ,
1998, incorporated by reference to Exhibit 99(a)(1) to Schedule 13E-4.
(d)(2) Form of Letter of Transmittal and Proxy, incorporated by reference
to Exhibit 99(a)(2) to Schedule 13E-4.
(d)(3) Form of Separate Proxy, incorporated by reference to Exhibit
99(a)(3) to Schedule 13E-4.
(d)(4) Form of Notice of Guaranteed Delivery, incorporated by reference to
Exhibit 99(a)(4) to Schedule 13E-4.
(d)(5) Notice of Special Meeting of Shareholders, incorporated by reference
to Exhibit 99(a)(5) to Schedule 13E-4.
(d)(6) Form of Letter to Brokers, Dealers, Commercial Banks, Trust
Companies and Other Nominees, incorporated by reference to Exhibit 99(a)(6) to
Schedule 13E-4.
(d)(7) Form of Letter to Clients of Brokers, Dealers, Commercial Banks,
Trust Companies and Other Nominees, incorporated by reference to Exhibit
99(a)(7) to Schedule 13E-4.
(d)(8) Letter to Shareholders, dated , 1998,
incorporated by reference to Exhibit 99(a)(8) to Schedule 13E-4.
(d)(9) Summary Advertisement, dated , 1998,
incorporated by reference to Exhibit 99(a)(9) to Schedule 13E-4.*
(d)(10) Press Release, dated , 1998, incorporated by
reference to Exhibit 99(a)(10) to Schedule 13E-4.*
(e) The information appearing under the caption "Proposed Amendment and
Proxy Solicitation -- Dissenters= Rights" in the Offer to Purchase and Proxy
Statement referenced herein as Exhibit (d)(1), is incorporated in its entirety
herein by reference pursuant to General Instruction D to Schedule 13E-3.
(f) Not applicable.
(g)(1) Issuer Tender Offer Statement of IPC on Schedule 13E-4, dated
, 1998, incorporated by reference thereto.
(g)(2) Annual Report on Form 10-K of IPC for the year ended December 31,
1997, incorporated by reference to SEC File No. 1-3004.
(g)(3) Annual Report on Form 10-K of ILN for the year ended December 31,
1997, incorporated by reference to SEC File No. 1-11327.
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(g)(4) Definitive Proxy Statement of ILN on Schedule 14A, dated March 10,
1998, incorporated by reference to SEC File No. 1-11327.
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* To be filed by amendment.
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SIGNATURE
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: April 1, 1998 ILLINOVA CORPORATION
By: /s/ Leah Manning Stetzner
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Leah Manning Stetzner,
General Counsel and Corporate
Secretary
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