<PAGE>
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934 (Amendment No. )
Filed by the Registrant /X/
Filed by a Party other than the Registrant / /
Check the appropriate box:
/ / Preliminary Proxy Statement
/ / Confidential, for Use of the Commission Only (as permitted by Rule
14a-6(e)(2))
/ / Definitive Proxy Statement
/X/ Definitive Additional Materials
/ / Soliciting Material Pursuant to Section 240.14a-11(c) or Section
240.14a-12
UTILICORP UNITED INC.
- --------------------------------------------------------------------------------
(Name of Registrant as Specified In Its Charter)
- --------------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
/ / $125 per Exchange Act Rules 0-11(c)(1)(ii), 14a-6(i)(1), 14a-6(i)(2) or
Item 22(a)(2) of Schedule 14A.
/ / $500 per each party to the controversy pursuant to Exchange Act Rule
14a-6(i)(3).
/ / Fee computed on table below per Exchange Act Rules 14a-6(i)(4)
and 0-11.
1) Title of each class of securities to which transaction applies:
------------------------------------------------------------------------
2) Aggregate number of securities to which transaction applies:
------------------------------------------------------------------------
3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the
filing fee is calculated and state how it was determined):
------------------------------------------------------------------------
4) Proposed maximum aggregate value of transaction:
------------------------------------------------------------------------
5) Total fee paid:
------------------------------------------------------------------------
/ / Fee paid previously with preliminary materials.
/X/ Check box if any part of the fee is offset as provided by Exchange Act Rule
0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number,
or the Form or Schedule and the date of its filing.
1) Amount Previously Paid:
$1,078,816
------------------------------------------------------------------------
2) Form, Schedule or Registration Statement No.:
PRELIMINARY JOINT PROXY STATEMENT/PROSPECTUS ON SCHEDULE 14A AND
KC UNITED CORP. FORM S-4 FILE NO. 333-02223
------------------------------------------------------------------------
3) Filing Party:
UTILICORP UNITED, KANSAS CITY POWER & LIGHT
------------------------------------------------------------------------
4) Date Filed:
FEBRUARY 21, 1996 AND APRIL 4, 1996
------------------------------------------------------------------------
<PAGE>
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This material is being filed pursuant to Rule 14a-6 and is
expected to be used by company employees in various presentations
to interest parties.
UtiliCorp/KCP&L
Perfect Merger of Equals
<PAGE>
- --------------------------------------------------------------------------------
WRI/KLT Pro-Forma EPS
<TABLE>
<CAPTION>
1997 1998 1999 2000
---- ---- ---- ----
<S> <C> <C> <C> <C>
Earnings Per Share:
First Call.............................. 2.75 2.75 2.83(1) 2.91(1)
WRI S-4 Filing (4/22/96)................ 2.52 2.64 2.89 2.94
WRI S-4 Filing (6/19/96)
(1.1 exchange ratio).................. 2.42 2.56 2.59
WRI S-4 Filing (6/19/96)
minus 20M additional rate reduction... 2.33 2.46 2.50
</TABLE>
- ----------------
(1) Based on projected EPS growth of 3.0% -- First Call
Sources: First Call Estimate (6/19/96)
WRI S-4 Filing (4/22/96)
WRI S-4 Filing (6/19/96)
<PAGE>
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The perfect merger of equals...
Customers
Shareholders
Employees
....delivers benefits to all key stakeholders
<PAGE>
- --------------------------------------------------------------------------------
Western Resources Inc.
Pro-Forma Financial Projections with Acquisition of KCPL
<TABLE>
<CAPTION>
1996 1997 1998 1999 2000
----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C>
Operating Income Before Net
Cost Savings................... 631.9 621.1 581.2 578.8 558.0
Net Cost Savings................. -- -- 70.4 79.8 93.8
Net Other Income(1).............. 38.4 67.4 61.0 79.6 85.7
----- ----- ----- ----- -----
Total.......................... 670.7 688.5 712.6 738.2 737.5
</TABLE>
- ----------------
(1) Home security, investment in ADT, and unidentified other non-regulated
activities
Source: WR Preliminary Form S4 filed 6/19/96
<PAGE>
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UCU/KCPL
Projected Financial Information (1)
($ millions)
<TABLE>
<CAPTION>
1996
-------------------------
UCU KCPL Combined
------ ------ --------
<S> <C> <C> <C>
Revenues............................... $2,850 $ 910 $3,760
Net Profit............................. 120 130 250
Total Capitalization................... 2,685 1,875 4,560
EPS -- Value Line...................... 2.20 2.00 2.17(2)
-- First Call...................... 2.16 1.97 --
-- IBES............................ 2.20 1.97 --
DPS.................................... 1.76 1.58 1.85*
Shares Outstanding (mil.).............. 53.3 61.9 115.2(2)
</TABLE>
(1) Source: Value Line estimates
(2) Source: EPS combined calculated from combined Value Line estimate
of net profit divided by combined number of shares.
* Mgmt. first year dividend recommendation
<PAGE>
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EXECUTIVE SUMMARY AND METHODOLOGY
SUMMARY OF SYNERGIES (000s)
<TABLE>
<CAPTION>
GENERATE ENERGY
---------------
<S> <C>
FUEL PROCUREMENT
Staff............................ $1,157
Generation Options............... 2,675
------
$3,826
SYSTEM GENERATION
Combined System Dispatch......... $107,414
Alternative Plan Construction.... 161,020
--------
$268,434
GENERATION PROCESSES
Staff........................... $25,430
EMS............................. 3,838
OBM............................. 13,427
-------
$42,695
<CAPTION>
DISTRIBUTE AND TRANSPORT ENERGY
-------------------------------
<S> <C>
TRANSMISSION
Capital Projects................ $ 4,078
Capital Components.............. 4,646
Staff........................... 6,698
-------
$15,422
DISTRIBUTION
Capital Projects................ $ 3,061
Distribution/Eng/Plan Design.... 3,360
Meter Shop...................... 1,326
Dist. Dispatch.................. 9,047
-------
$16,794
<CAPTION>
SERVE CUSTOMERS
---------------
<S> <C>
CUSTOMER SERVICE
Collections..................... $ 528
CellNet......................... 177
Call Center..................... 3,053
Itron........................... 614
------
$4,372
<CAPTION>
PURCHAS'G/MATR'LS & FACILITIES
------------------------------
<S> <C>
PURCHASING & MATERIALS MGMT
Supplier Leverage (Materials)... $5,907
Supplier Leverage (Services).... 28,589
Generation Matrl's.............. 710
Freight......................... 909
Staff........................... 14,623
------
$50,738
<CAPTION>
INFORMATION TECHNOLOGY
----------------------
<S> <C>
ENTERPRISE SUPPORT
Enterprise Support.............. $46,875
-------
$46,875
CIS
Customer Information Systems.... $16,125
-------
$16,125
DATA CENTER CONSOLIDATION
Data Center Consolidation....... $32,840
-------
$32,840
OTHER ISSUES
End User Support................ $2,792
AM/FM Consolidation............. 1,565
Telecommunications.............. 5,219
Staff........................... 2,786
------
$13,362
<CAPTION>
EXEC & ADMIN. SUPPORT
---------------------
<S> <C>
FINANCIAL SUPPORT
FUNCTION LABOR
Accounting...................... $21,048
Planning & Budgeting............ 6,390
Finance......................... 5,149
Audit........................... 2,816
Risk Management................. 0
-------
$35,403
NON-FINANCIAL
SUPPORT FUNCTION LABOR
Human Resources................. $5,526
Rates & Regulation.............. 2,133
Environmental................... 2,220
Govmt. Relations................ 2,220
Communications.................. 2,913
Legal........................... 1,409
------
$16,421
FINANCIAL SUPPORT-
RELATED EXPENDITURES
Finance......................... $11,132
Risk Management................. 7,263
Audit........................... 3,648
Accounting...................... 2,355
Planning & Budget............... 296
------
$24,894
NONFINANCIAL SUPPORT-
RELATED EXPENDITURES
Legal........................... $11,603
Communications.................. 3,385
Environmental................... 2,126
Rates & Regulation.............. 904
Human Resources................. 587
Govmt. Relations................ 332
Other........................... (30,680)
--------
$(11,743)
</TABLE>
<TABLE>
<S> <C>
Noncapital Labor.................................................... $141,451
Capital Labor....................................................... 15,117
Noncapital Expenditures............................................. 290,065
Capital Expenditures................................................ 159,697
--------
Total Synergies..................................................... $606,331
Present Value of Total Synergies.................................... $331,635
Avoided New Hires................................................... 36
Eliminated Positions................................................ 202
Total FTEs.......................................................... 238
</TABLE>
- ----------------
(1) Numbers may not tie due to rounding.
<PAGE>
- --------------------------------------------------------------------------------
Synergy Savings (1)
($ In millions)
<TABLE>
<CAPTION>
Year 1 Year 2 Year 3 Year 4
------ ------ ------ ------
<S> <C> <C> <C> <C>
Generate Energy.......................... 6.4 9.2 11.2 17.4
Serve Customers.......................... (.5) (.2) .2 .5
Information Technology................... 7.3 10.9 12.8 11.7
Distribute and Transport Energy.......... .7 .7 3.2 3.6
Purchasing/Materials and Facilities...... 2.7 6.1 7.2 7.0
Executive and Administrative Support..... 2.6 4.7 7.7 9.4
----- ----- ----- -----
$19.2 $31.3 $42.3 $49.6
EPS Contribution*........................ $.10 $.16 $.22 $.25
</TABLE>
- ----------------
* Based on Ernst & Young Synergies Study
(1) Numbers may not add due to rounding
<PAGE>
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Projected EPS Contribution
<TABLE>
<CAPTION>
1st Year 2nd Year 3rd Year 4th Year
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Synergy Savings................ $.10 $.16 $.22 $.25
International Enhancements..... .12 .08 .15 .15
New Products................... .05 .11 .16 .24
Additional Operation Benefits.. .08 .08 .07 .06
Energy Marketing Enhancements.. .04 .06 .04 .05
</TABLE>
<PAGE>
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Per Share Benefits of Merger
($ In millions, except per share amounts)
<TABLE>
<CAPTION>
Yr. 1 Yr. 2 Yr. 3 Yr. 4
----- ----- ----- -----
<S> <C> <C> <C> <C>
Synergy Savings................... $.10 $.16 $.22 $.25
Additional Operational Benefits... .08 .08 .07 .06
Income Enhancement Opportunities.. .20 .25 .35 .44
---- ---- ---- ----
Total........................... $.38 $.49 $.64 $.75
Avg. Common Shares Outstanding.... 116.0 118.0 120.0 122.0
</TABLE>
<PAGE>
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Access to Capital Markets
For Growth
UtiliCorp vs. NEWCO
<TABLE>
<CAPTION>
($ millions)
<S> <C>
UCU 1985........... $ 65 m
UCU 1997........... $320 m
Newco 1997......... $700 m
</TABLE>
Assumptions -- issuance of 10% of shares per year
-- debt issuance to maintain 50% equity ratio
<PAGE>
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NEWCO
Retail Rate Profile
-------------------
Current/Proposed Rates
<TABLE>
<CAPTION>
Customer
Class Annual Avg. $/Kwh
----- ----------------------------------
NewCo National
Avg.* WRI** Regional*** Avg.
------- ------ ------------ -------
<S> <C> <C> <C> <C>
Residential...................... 8.0 8.5 7.0 8.6
Commercial....................... 7.8 8.2 6.9 8.2
Industrial....................... 5.5 5.8 5.0 6.2
</TABLE>
* NewCo is average of KCPL, MPS, WPE-KS
** WRI is average of KGE, KPL
*** Regional is West North Central region which includes Iowa, Kansas,
Missouri, No. Dakota, and So. Dakota (EEI)
Source -- Edison Electric Institute Avg. summer & winter rates 7/1/95 & 1/1/96
<PAGE>
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UCU/KCPL
FERC Regulatory Process
Timeline
- --------------------------------------------------------------------------------
1/19/96 3/29/96 6/96 1st Half '97
Merger FERC Amended Ferc Approval/
Announcement App/Testimony FERC App Merger
filed filed Completion
- - FERC
----
- - Application and Testimony filed 3/29/96
- - Amended Application filed 6/96
- - Approval Obtained late 1996 early 1997
<PAGE>
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UCU/KCPL
State Regulatory Process
<TABLE>
Timeline
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1/19/96 7/15/96 6/30/96 10/96 11/96 12/96 1st Half '97
Merger Iowa Hearing W. Virginia Missouri hearing Kansas hearing MO, KS, MN, IA & CO Ferc Approval/
Announcement decision Procedural schedules Merger
established permitting Completion
all approvals by 12/96
Missouri
- --------
- - Application pending for merger agreement approval Michigan
- - Direct testimony of KCPL/UCU filed --------
- - October hearing schedules - Transfer authority to do business to new company
- - Negotiations may lead to earlier approval in third quarter
International
-------------
Kansas - Standard filing no hearings required
- ------
- - Application pending for approval of merger agreement Australia
- - Direct testimony of KCPL/UCU filed ---------
- - November hearing scheduled Filed for approval with foreign investment
- - Preliminary indications from commission staff that merger review board
application can be approved year end 1996
New Zealand
-----------
Minnesota, Iowa, West Virginia, Colorado Filed with investment commission -
- ---------------------------------------- approval received
- - Application pending for approval of merger agreement
- - Direct testimony of UCU filed
- - Procedural schedules established permitting all approvals
before year-end
</TABLE>
<PAGE>
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The perfect merger of equals...
Achievable
Credible
Strategic
<PAGE>
- --------------------------------------------------------------------------------
Winner in Marketplace
- Operational excellence
- Strong credit rating
- National gas marketer/trader - 10.5 bcf/day (top 10)
- National power marketer/trader - over 10,000 (top 10)
mwh/day
- First and dominant national brand - EnergyOne
- Stand-alone 10-year average total return is
above the industry -- UCU: 17.3%; KCPL: 17.7%;
industry: 13.1%
- Diverse products, territories, asset base and generating mix
- Experience operating competitive non-regulated businesses
