<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:
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/X/ Fee paid previously with preliminary materials.
/ / 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:
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2) Form, Schedule or Registration Statement No.:
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4) Date Filed:
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<PAGE>
This material is being filed pursuant to Rule 14a-6 and is the being
provided to UtiliCorp's employees and may be used by them
as discussion points with interested parties.
UTILICORP UNITED AND KANSAS CITY POWER & LIGHT
BETTER TOGETHER
- -------------------------------------------------------------------------------
UtiliCorp United and Kansas City Power & Light have a friendly agreement to
combine and create a strong, full-service energy provider that will bring added
value to our customers, employees, communities and shareholders. This new
partnership, a merger of equals, ensures the confidence of continued low-cost
energy, service dependability, local presence and sustained growth. In an
increasingly competitive utility industry, with large companies quickly
consuming smaller ones, the merger will secure continued local ownership of our
customer's energy services.
Our agreement is credible, achievable and strategic. It is important all
involved understand the value to be gained by this friendly merger.
* CUSTOMERS will receive continued reliable, low-cost energy and a greater
choice of new energy-related products and services. Kansas and Missouri
electric customers will receive a 2% rate reduction following our UCU-KCPL
merger.
* EMPLOYEES of the combined company will realize increased opportunities as
part of a stronger, growth-oriented company.
* COMMUNITIES will benefit from the continuity and commitment of a strong,
community-minded energy provider that can provide support to attract
business and stimulate economic growth in our service territory. The
merged company will continue our tradition of supplying enhanced resources
for philanthropic, volunteer and economic development support to the
communities we serve.
* SHAREHOLDERS will have a secure investment, and dividends will be
maintained at least at the current rate. Both companies have a history of
consistent dividend growth which is expected to continue after the merger.
Soon we'll have additional information to share with you on this subject.
In the midst of efforts to complete this friendly and beneficial merger, Topeka-
based Western Resources has launched an aggressive hostile takeover bid for
KCPL. However, strong companies are born not from hostile beginnings but from a
partnership of equals working for the benefit of our employees, customers,
communities, and shareholders. UtiliCorp and KCPL have grown with the
communities we serve. Now, together, we want to continue to serve local energy
needs long into the future.
- -------------------------------------------------------------------------------
UtiliCorp United
May 3, 1996
<PAGE>
This letter is being filed pursuant to Rule 14a-6 and will be sent to
shareholders that have voted beginning May 7, 1996.
May 6, 1996
Dear UtiliCorp Shareholder:
Today UtiliCorp and Kansas City Power & Light Company announced our intention
to recommend an initial annualized dividend rate of $1.85 per share for the
new company that will result from our pending merger. This step follows a
credible and well-documented analysis and is further confirmation of our
belief in the strong growth potential of our combined operations.
The announced rate represents a 15.2 percent increase to UtiliCorp
shareholders, after adjustment for the exchange ratio, and an 18.6 percent
increase to KCPL shareholders. Currently, UtiliCorp's annualized dividend is
$1.76 per share and KCPL's is $1.56 per share. The full text of today's
press release is enclosed for your information.
Thank you for your support.
Sincerely,
/s/ Richard Green, Jr.
<PAGE>
This letter is being filed pursuant to Rule 14a-6 and will be sent to
shareholders that have not voted yet beginning May 7, 1996.
May 6, 1996
Dear UtiliCorp Shareholder:
Today UtiliCorp and Kansas City Power & Light Company announced our intention
to recommend an initial annualized dividend rate of $1.85 per share for the
new company that will result from our pending merger. This step follows a
credible and well-documented analysis and is further confirmation of our
belief in the strong growth potential of our combined operations.
The announced rate represents a 15.2 percent increase to UtiliCorp
shareholders, after adjustment for the exchange ratio, and an 18.6 percent
increase to KCPL shareholders. Currently, UtiliCorp's annualized dividend is
$1.76 per share and KCPL's is $1.56 per share. The full text of today's
press release is enclosed for your information.
YOU WILL ALSO FIND A WHITE PROXY CARD ENCLOSED. IF YOU HAVE NOT ALREADY DONE
SO, I ENCOURAGE YOU TO VOTE BY SIGNING, DATING AND RETURNING THE CARD AS SOON
AS POSSIBLE. PLEASE REMEMBER THAT IF YOU DO NOT CAST A VOTE, YOU WILL BE
COUNTED AS VOTING AGAINST THE MERGER. THANK YOU IN ADVANCE FOR YOUR VOTE AND
YOUR SUPPORT.
Sincerely,
/s/ Richard Green, Jr.
<PAGE>
[KCPL Logo] [UiliCorp United Logo]
This press release is being filed pursuant to Rule 14a-6 and will be provided
to certain Stockbrokers by employees of UtiliCorp and Kansas City Power &
Light Company in presentations beginning May 6, 1996. In addition this press
release will be mailed to each of the company's shareholders.
KCPL AND UTILICORP INTEND TO RECOMMEND
$1.85 INITIAL DIVIDEND FOR MERGED COMPANY
RATE REPRESENTS 18.6 PERCENT INCREASE FOR KCPL SHAREHOLDERS
AND 15.2 PERCENT BOOST FOR UTILICORP SHAREHOLDERS
KANSAS CITY, MO, May 6, 1996 -- Kansas City Power & Light Company
(NYSE: KLT) and UtiliCorp United (NYSE: UCU) today announced their intention
to recommend an initial annualized dividend rate of $1.85 per share for the
new company that will result from their pending merger of equals.
Currently, UtiliCorp's dividend is $1.76 per share and KCPL's is $1.56
per share. The announced dividend rate for the merged company represents an
18.6 percent increase for KCPL shareholders and a 15.2 percent boost, after
adjustment for exchange ratio, for UtiliCorp shareholders. Under the terms
of the friendly merger entered into between the two companies on January 19,
1996, shareholders of KCPL will receive one share of stock in the new company
for each share of KCPL common stock owned, and holders of UtiliCorp common
stock will receive 1.096 shares of stock in the new company for each common
share of UtiliCorp owned.
"This dividend rate is based on a credible and well-documented
analysis," said Richard C. Green, Jr., Chairman and Chief Executive Officer
of UtiliCorp. "We believe shareholders will find it fair, prudent and
attractive. The $1.85 rate is further confirmation of our belief in the
strong growth potential of our combined operation."
"KCPL and UtiliCorp have put together an agreement that is readily
achievable, can pass regulatory scrutiny, has credible numbers to back it up,
and makes thorough strategic sense for our customers, shareholders, employees
and communities," added Drue Jennings, Chairman, President and Chief
Executive Officer of KCPL. "This dividend rate fits that picture perfectly,
and we believe shareholders will have recognized that fact when the votes are
counted on May 22. We expect the UtiliCorp/KCPL combination will be strongly
positioned to continue delivering above-average returns to our shareholders."
<PAGE>
- more -
Dividend, page 2
The chief executives of the two Kansas City-based firms said their
companies' agreement to merge is based on a shared vision and is a strategic
response to the new competitive dynamics of the utility industry. The merger
will create a unique type of company -- one with the customer focus and
growth characteristics of a diversified energy services provider, underpinned
by the operating and financial strengths of its core utility business.
Over the next 10 years the merger is expected to produce cost savings
and efficiencies totaling more than $600 million, reduced rates for utility
customers and increased opportunities for employees.
Kansas City Power & Light Company provides electric power to a growing
and diversified service territory encompassing metropolitan Kansas City and
parts of eastern Kansas and Western Missouri. KCPL is a low-cost producer
and a leader in fuel procurement and plant technology. KLT Inc., a
wholly-owned subsidiary of KCPL, pursues opportunities in non-regulated,
primarily energy-related ventures.
UtiliCorp United is an international electric and gas company with
energy customers and operations across the U.S. and in Canada, Great Britain,
New Zealand, Australia and Jamaica. In 1995 it launched EnergyOneSM, the
first nationally branded line of products and services for electric and gas
utility customers. UtiliCorp has grown rapidly over the past decade through
utility mergers and acquisitions and by starting non-regulated energy-related
businesses.
###
MEDIA CONTACTS: INVESTOR CONTACTS:
- --------------- ------------------
KCPL: Pam Levetzow -- 816-556-2926 David Myers -- 816-556-2312
Phyllis Desbien -- 816-556-2903 Andrea Bielsker -- 816-556-2595
UTILICORP: Jerry Cosley -- 816-467-3677 Dale Wolf -- 816-467-3536
Media Relations -- 816-467-3000 Ellen Fairchild -- 816-467-3506
<PAGE>
This material is being filed pursuant to Rule 14a-6 and consists of slides
for presentations that will be given to interested parties beginning May 7,
1996.
[UTILICORP LOGO] [KCPL LOGO]
MAY 1996
<PAGE>
THE PERFECT MERGER OF EQUALS...
[TRIANGLE]
- - GROWTH-ORIENTED
- - NATIONAL/INTERNATIONAL
- - OPERATING AND FINANCIAL STRENGTH
...DELIVERS BENEFITS TO ALL KEY STAKEHOLDERS
<PAGE>
THE PERFECT MERGER OF EQUALS...
[TRIANGLE]
- - ACHIEVABLE
- - CREDIBLE
- - STRATEGIC
<PAGE>
NEW COMPANY TRAITS
- - COMPETITIVE EXPERIENCE
- - DIVERSITY
- - $3B INVESTED IN GROWTH
- - TOP 10 POWER MARKETING
- - TOP 10 GAS WHOLESALING
- - TOP LEVEL
EMPLOYEE OWNERSHIP
<PAGE>
BENEFITS TO STAKEHOLDERS
SHAREHOLDERS
- - EARNINGS GROWTH
- - RELIABLE DIVIDEND
- - NON-REG. BUSINESSES
- - COMPOUND GROWTH
CUSTOMERS
- - RANGE OF SERVICES
- - RATE REDUCTIONS/SHARED SAVINGS
- - 5-YEAR RATE STABILITY
<PAGE>
BENEFITS TO STAKEHOLDERS
EMPLOYEES
- - STRONGER COMPANY
- - OPPORTUNITIES MULTINATIONAL
- - STOCK IN COMPETITIVE
NATIONAL COMPANY
COMMUNITIES
- - VOICE IN NATIONAL POLICY
- - ATTRACT NEW BUSINESS
- - ENHANCED SUPPORT
<PAGE>
SYNERGIES
COST SAVINGS OF $600 MILLION OVER FIRST 10 YEARS
[A PICTURE IMAGE]
A picture showing
various elements
of the energy industry.
<PAGE>
SYNERGIES -- TOTAL $600 MILLION
- - EXECUTIVE & ADMINISTRATIVE SUPPORT
$65 MILLION
- - FLEET & FACILITIES
$30 MILLION
- - PURCHASING/MATERIALS & FACILITIES
$51 MILLION
- - INFORMATION TECHNOLOGY
$113 MILLION
- - DISTRIBUTE AND TRANSPORT ENERGY
$32 MILLION
- - GENERATE ENERGY
$315 MILLION
<PAGE>
MAJOR DRIVERS
[A PICTURE IMAGE]
A picture showing major drivers of energy industry.
- - TECHNOLOGY
- - NEW ENTRANTS
- - CUSTOMERS
- - REGULATORY AND LEGISLATIVE REFORM
<PAGE>
WINNER IN MARKETPLACE
- - OPERATIONAL EXCELLENCE
- - STRONG CREDIT RATING
- - A TRUE ENERGY COMPANY
- - GAS MARKETER/TRADER
- - POWER MARKETER/TRADER
- - NATIONAL BRAND -- ENERGYONE
- - 10-YEAR TOTAL RETURN:
UCU: 17.3% KCPL: 17.7%
INDUSTRY 13.1%
<PAGE>
GROWTH STRATEGY
- - GOAL OF RETURN ABOVE
S&P 500 AND INDUSTRY PEERS
- - NEW PRODUCTS/SERVICES
- - NON-REGULATED BUSINESSES
- - GLOBAL INITIATIVES
- - ALLIANCES/PARTNERSHIPS
- - MERGERS/ACQUISITIONS
<PAGE>
GROWTH RECORD
NEW
COMPANY
-------
GAS SALES/TRANSPORTATION 1,075%
ELECTRIC SALES 179%
TOTAL SALES 421%
TOTAL CUSTOMERS 250%
TOTAL ASSETS 200%
NON-REGULATED BUSINESSES REACHED $1.6 BILLION
<PAGE>
GROWTH IN SHAREHOLDER VALUE
[BAR GRAPH]
DECEMBER 31
VCU CPL
--- ---
85 1000 1000
86 1539.43 1335.40
87 1205.20 1289.86
88 1665.40 1752.15
89 2107.26 2100.48
90 2091.46 2296.24
91 3083.56 3298.78
92 3162.00 3377.95
93 3819.58 3625.56
94 3392.51 3953.31
95 3980.76 4732.90
<PAGE>
COMBINED FINANCIALS
(BASED ON YEAR END 1995 -- PRO FORMA)
MILLIONS UCU KCPL NEW
COMPANY
- - REVENUES $2,798.5 $886.0 $3,684.5
- - OPERATING INCOME $225.1 $244.1 $469.2
- - EARNINGS AVAILABLE $77.7 $118.6 $196.3
- - 10-YEAR TOTAL RETURN 298% 373%
(VS. INDUSTRY AVERAGE OF 211%)
- - TOTAL ASSETS $3,885.9 $2,882.5 $6,768.4
<PAGE>
[A Map of North America showing locations of Utilicorp and KCPL utility
service area, marketing area, power projects, gas pipelines and gas
processing plants.]
<PAGE>
[Map of United States showing locations of power projects of KCPL and
Utilicorp.]
<PAGE>
[A Map of China and Jamaica showing locations of power projects.]
<PAGE>
[A Map of British Columbia, New Zealand, United Kingdom and Australia showing
locations of service territory and customer count.]
- - BRITISH COLUMBIA
81,000
- - NEW ZEALAND
279,000
- - UNITED KINGDOM
27,000
- - AUSTRALIA
520,000
<PAGE>
THE PERFECT MERGER OF EQUALS...
[TRIANGLE]
- - GROWTH ORIENTED
- - NATIONAL/INTERNATIONAL
- - OPERATING AND FINANCIAL STRENGTH
... DELIVERS BENEFITS TO ALL KEY STAKEHOLDERS
<PAGE>
[UTILICORP LOGO] [KCPL LOGO]
MAY 1996
<PAGE>
This material is being filed pursuant to Rule 14a-6 and consists of presenter
notes for a presentation to various groups beginning May 6, 1996.
- -------------------------------------------------------------------------------
SLIDE 1: CURRENT UCU AND KLT LOGOS
POINTS TO MAKE:
- - Welcome and self-introductions
- - Excitement about the merger and what it will mean
POINTS TO MAKE:
- - For shareholders to want to merge, a combination must be achievable and
believable, and make good long-term strategic sense.
- - This deal satisfies all three points, and we will explain why....
- - It's a friendly merger of equals, beneficial to both companies.
- - We don't expect any major regulatory hurdles.
- - Our synergies estimates were done by both companies plus an independent
auditor
- - Both companies are financially healthy and have sound track records of
growth.
- - The merger offers significant strategic and financial benefits for all
stakeholders
- - The first utility merger equally driven by synergies AND growth strategy
<PAGE>
- -------------------------------------------------------------------------------
SLIDE 2: THE PERFECT MERGER OF EQUALS.... DELIVERS BENEFITS TO ALL KEY
STAKEHOLDERS
KCPL & UtiliCorp:
[TRIANGLE]
- - Growth-Oriented
- - Operating and Financial Strength
- - National/International
POINTS TO MAKE:
- - Combination with all stakeholder groups in mind
- - Deal built on complementary strengths and attributes
- - Combined company will deliver enduring, dynamic growth
- - Both companies have growth strategies with proven track records
- - Will grow faster together than either company could alone
- - Active in emerging global market for energy
<PAGE>
- -------------------------------------------------------------------------------
SLIDE 3: NEW COMPANY TRAITS
- - 10 years experience operating competitive non-regulated businesses
through growth in earnings and dividends
- - Diverse products, territories, asset base and generating mix
- - 10 years investment in growth-- $3 billion
- - Recognized leader in fuel procurement and generating technology
- - Top 10 in power marketing
- - Top 10 in gas wholesaling
- - Top level of employee ownership
POINTS TO MAKE:
- - A superior deal because of what our combined companies bring together.
- - Broad energy expertise and industry leadership.
- - Geographic reach, national and international.
- - We think like shareowners because so many of us (over 90%) ARE shareowners.
<PAGE>
- -------------------------------------------------------------------------------
SLIDE 4: BENEFITS TO STAKEHOLDERS
SHAREHOLDERS
- - Strong potential for earnings growth
- - Reliable dividend with strong growth outlook
- - Portfolio of non-regulated businesses
- - Compound growth as combined company
CUSTOMERS
- - Range of energy products and services
- - Immediate reductions in retail electric rates; shared savings
- - 5-year period of rate stability
POINTS TO MAKE:
- - Positioned to seize opportunities
- - Being highly competitive benefits customers in quality of service,
choice of products, and costs.
<PAGE>
- -------------------------------------------------------------------------------
SLIDE 5: BENEFITS TO STAKEHOLDERS
EMPLOYEES
- - Part of a stronger, growth-oriented company
- - Expanded career opportunities with multinational reach
- - Opportunity to own stock in a competitive, national energy company
COMMUNITIES
- - Stronger voice in national policy debates
- - Greater ability to attract new business
- - Enhanced community involvement and support
POINTS TO MAKE:
- - Growing employee base; UCU added 450 jobs in 1995, has 200 new hire
openings NOW...
- - About 5 million shares owned by employees
- - New company's growth will provide greater opportunity for employees and
bring added jobs and support to communities.
- - Both companies have strong records of community support and development
<PAGE>
- -------------------------------------------------------------------------------
SLIDE 6: SYNERGIES (GRAPHIC)
- - Cost savings of $600 million over a 10-year period
POINTS TO MAKE:
- - We came up with a very realistic estimate of savings, adhering to the
strict guidelines specified by the Federal Energy Regulatory Commission.
- - Our estimate was developed by about 300 employees from both companies and
independent outside consultants.
- - Now here's a look at the various components of that $600 million estimate:
<PAGE>
- -------------------------------------------------------------------------------
SLIDE 6 SYNERGIES CONTINUED:
- - Generate energy
- - Distribute and transport energy
- - Serve customers
- - Purchasing/materials & facilities
- - Information technology
- - Executive and administrative support
POINTS TO MAKE:
- - We have identified six main areas for cost savings:
- - $315 MILLION in all aspects of power generation by:
-- optimizing generation dispatch
-- achieving maintenance efficiencies
-- avoiding capital expenditures for future plant construction
- - $32 MILLION through:
-- consolidation of power station and substation facilities
-- adoption of more efficient practices
-- avoidance of capital outlays
- - $4.3 MILLION through:
-- collections
-- expanding the use of cellnet
-- consolidation of call centers
- - $51 MILLION in purchasing and materials management through:
-- combined volume purchasing benefits
-- reduced inventories
-- improved use of warehouse and storage facilities
- - $30 MILLION in fleet and facilities management by:
-- combining and reducing the inventory of vehicles
-- achieving better lease terms
-- improving maintenance support
-- consolidating corporate headquarters in Kansas City and other facilities
- - $113 MILLION in various information technology applications by:
-- avoiding duplication
-- consolidating support for systems such as accounting and customer
information
-- realizing savings on telecommunications, hardware and software, fees and
licenses
- - $65 MILLION in consolidating and optimizing a wide range of administrative
and departmental process and systems duplications
<PAGE>
- -------------------------------------------------------------------------------
SLIDE 7: MAJOR DRIVERS
[ GRAPHIC ]
ENERGY INDUSTRY
- - Technology
- - Customers
- - New Entrants
- - Regulatory and Legislative Reform
POINTS TO MAKE:
- - Changing environment leading to intense competition, need for mergers
- - Must have low-cost operations
- - Must manage low-margin commodity business
- - Must increase margins through new products and services
- - With a blended management team and multiple marketing skills, our combined
company is equipped to handle these challenges positively
<PAGE>
- -------------------------------------------------------------------------------
SLIDE 8: WINNER IN MARKETPLACE
- - Operational excellence
- - Strong credit rating
- - A true energy company
- - National gas marketer/trader-- 10.5 bcf/day
- - National power marketer/trader-- over 10,000 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%; electric industry: 13.1%.
POINTS TO MAKE:
- - Operational excellence:
-- KCPL known for fuel and fuel cost management; $.77 per mmbtu in 1995
(no one else below $1.00 in the region).
-- Exceptional facilities availability.
-- Iatan plant in top 10 for low production costs.
-- Wolf Creek the #1 nuclear generator in U.S. and #4 in the world
(total kwh produced)
- - EnergyOne is a nationally recognized brand, making long-term, national
account sales:
-- Service Merchandise stores
-- Applebee's; Wendy's; McDonalds
-- California school districts
-- Asian-American Hotel Association
-- 3M; IBM; AT&T
<PAGE>
- -------------------------------------------------------------------------------
SLIDE 9: GROWTH STRATEGY
- - Goal of total shareholder returns above S&P 500 and industry peers
- - New products and services
- - Non-regulated businesses
- - Global initiatives
- - Alliances and partnerships
- - Mergers and acquisitions
POINTS TO MAKE:
- - Our companies have a successful track record in all of these areas.
- -
- -
- -
<PAGE>
- -------------------------------------------------------------------------------
SLIDE 10: GROWTH RECORD
NEW COMPANY
-----------
- - Gas sales/transportation 1,075%
- - Electric sales 179%
- - Total sales 421%
- - Total customers 250%
- - Total assets 200%
- - Non-regulated businesses reached $1.6 billion
POINTS TO MAKE:
- - Strong growth track record.
- - Figures are for 10-year cumulative growth, both companies combined.
- - Customer growth includes 520,000 customers in Australia acquired in 1995.
- - Non-regulated sales reflect businesses started from scratch within last 10
years.
<PAGE>
- -------------------------------------------------------------------------------
SLIDE 11: GROWTH IN SHAREHOLDER VALUE
[ BAR GRAPH ]
POINTS TO MAKE:
- - Based on the 10-year history of our two companies, shown here, projecting
total returns to shareholders for first 10 years after closing means that
$1,000 invested would grow to over $5,000.
- - Graph shows historic 10-year growth in total return to shareholders,
assuming $1,000 invested on 12/31/85, including price appreciation,
dividends and dividend reinvestment (including UCU 2% stock dividends paid
semiannually in 1986 thru 1989).
- - We are creating a diversified energy company designed for growth
- - Responding to industry dynamics, similar to airlines and banking
- - Starting with 2.5 million customers domestic and international
- - Market covers the U.S., with a presence in six foreign countries
- - Strong marketing infrastructure and customer focus
- - Track record in acquisitions, expansion and new businesses
- - More able to offer energy-related services
- - Low-cost suppliers of energy
- - Combined company's enviable position sets us apart from competition
<PAGE>
- -------------------------------------------------------------------------------
SLIDE 12: DIVIDEND OF NEW COMPANY
Recommending $1.85 initial rate
Up 18.6% from KCPL's $1.56
Up 15.2% from UCU's $1.76
Based on credible analysis
Achievable growth potential
POINTS TO MAKE:
UCU's percent increase includes adjustment for conversion ratio
Target payout ratio in the low 80% range
Areas for continued earnings growth
- Managing the base business(regulated wires and pipes)
Synergies as identified in bottoms-up analysis facilitated by
Ernst & Young
Additional opportunities that we have identified as we started to
work together to integrate the two companies
These are real and achievable
- Growing the business primarily from International and Non-Regulated
activities
International
Leverage proven acquisition strategy
Export existing operational expertise
Expanded access to capital markets to capitalize on new
investments
UER's Wholesale Marketing and Pipeline/Processing Businesses, and
Double number of gas energy traders
Electric energy trading business
AQP has been aggressively pursuing the natural gas liquids
market their earnings doubled from 1st Q1995 t0 1st Q1996.
National marketing of new products and services to an increasingly
unregulated market.
Market nationwide a variety of energy related products and
services
Partnering of UCU & KCPL efforts will enhance opportunities
<PAGE>
- -------------------------------------------------------------------------------
SLIDE 13: NORTH AMERICA WITH ARROWS TO FOREIGN COUNTRIES
[ COMBINED SERVICE AREA MAP ]
POINTS TO MAKE - NORTH AMERICA:
- - Our new company will have extended, national market reach
- - Marketing natural gas in nearly all 48 states.
- - Marketing electric power nationwide.
- - Electric and gas utilities in eight states and British Columbia.
- - Poised for additional domestic and international growth
- - A natural fit to achieve meaningful synergies.
POINTS TO MAKE IPP PROJECTS:
- - Our company has extensive experience with independent power projects,
primarily in eastern and western states.
- - Recently entered an agreement with Air Products and Chemicals to develop,
own and operate generating projects in 16 states in the Midwest.
- - Our interests in generating projects have international reach.
- - We are investing in small-scale power projects in China.
- - We are a partner in a 60 MW generating project in Kingston, Jamaica that
will begin operations later this year.
POINTS TO MAKE - BRITISH COLUMBIA, NEW ZEALAND, UNITED KINGDOM, AUSTRALIA:
- - Our company has nearly 10 years experience with utility operations in other
countries
- - Today we are approaching 1 million international customers (numbers on
screen).
- - We are well wired into the emerging global market for energy, fueled by
deregulation and privatization
- - The U.K. market is opening up competition for more than 18 million
residential gas customers.
- - We are the managing partner in United Energy, got first pick of Victorian
electric distribution companies.
<PAGE>
- -------------------------------------------------------------------------------
SLIDE 14: THE PERFECT MERGER OF EQUALS.... ACHIEVABLE, CREDIBLE, STRATEGIC
KCPL & UtiliCorp:
[TRIANGLE]
- - Strategic
- - Credible
- - Achievable
CONCLUDING POINTS TO MAKE:
- - Our merger is built on solid facts
Benefits all stakeholder groups
- - Builds on complementary strengths and attributes
- - Will deliver enduring, dynamic growth
- - Reliable dividend with growth outlook
- - Both companies have growth strategies with proven track records
- - Will grow faster together than either company could alone
- - Deal is doable, credible and strategic.
- - Now we will welcome your questions.
<PAGE>
This material is being filed pursuant to Rule 14a-6 and will appear in print
media and will be provided to interested parties beginning May 6, 1996.
IT'S ABOUT CREDIBILITY
To Our Shareholders:
OUR FRIENDLY MERGER CREATES A STRONG, NEW COMPANY
...WESTERN IS TRYING TO BREAK IT UP
Clearly, Western Resources, Inc.'s hostile bid is not designed to create a
company, it's to break up what it sees as a formidable, new competitor -- the
company created through the FRIENDLY MERGER OF EQUALS between Kansas City
Power and Light Company and Utilicorp United Inc.
Think about it. To pay fair and equitable dividends -- and to deliver
enduring value to shareholders over the long-term much more is needed than
simply an ILLUSORY OFFER built upon FAULTY ASSUMPTIONS. And Western
Resources' hostile "offer" has so many conditions and hurdles attached to it
that KCPL shareholders have to wonder just how real it really is.
<TABLE>
<S> <C>
ASK YOURSELF:
Why is Western conditioning its "offer" on AT LEAST 90% of HOSTILE SITUATION?
KCPL shares being tendered...
ASK YOURSELF:
Are you willing to wait AS LONG AS TWO YEARS hoping to get ...WHO WILL HAVE TO APPROVE A DEAL THAT APPEARS TO BE
Western shares knowing that the payoff is in the hands of DILUTIVE TO THEM?
Western's shareholder's...
ASK YOURSELF:
Are you at all confident that Western will receive all ...WHEN IT STATES, IN ITS OWN S-4 SEC FILING, THAT THERE
"necessary or desirable" GOVERNMENTAL AND REGULATORY CAN BE NO ASSURANCES THAT SUCH APPROVALS CAN BE
APPROVALS... OBTAINED?
ASK YOURSELF:
Are you certain that this transaction is TAX-FREE (which the ...WHEN WESTERN ADMITTED, IN ITS S-4 SEC FILING, THAT
KCPL/Utilicorp merger would be)... THE TAX-EXEMPT STATUS OF THE TRANSACTION "IS NOT FREE
FROM DOUBT"?
ASK YOURSELF:
Are you certain that Missouri's anti-takeover statute, which ...WHEN KCPL'S BOARD OF DIRECTORS ALREADY HAS
among other things requires KCPL'S BOARD APPROVAL, won't REJECTED WESTERN'S OFFER?
preclude the deal from closing...
ASK YOURSELF:
Are you aware that an exchange offer in the utility industry ...WHICH COULD TAKE UP TO TWO YEARS?
CAN'T CLOSE until all regulatory approvals are received...
ASK YOURSELF:
Are you comfortable with Western having up to two years to ...WHEN IT MAY DO SO, AT ANY TIME DURING THAT PERIOD,
amend its offer, or TERMINATE IT COMPLETELY... AT ITS SOLE DISCRETION?
ASK YOURSELF:
Are you confident that there will be no LAYOFFS in a hostile ...WHEN WESTERN ADMITS IN ITS OFFICIAL FILINGS TO 531
takeover of KCPL... "MERGER RELATED REDUCTIONS"?
...WHICH IS UNLIKELY TO BE ACHIEVED IN ANY
</TABLE>
YOUR CONCLUSION SHOULD BE OBVIOUS.
WESTERN'S HOSTILE BID IS NOT CREDIBLE,
IT'S NOT ACHIEVABLE,
AND IT'S NOT STRATEGIC.
[KCPL LOGO]
<PAGE>
This material is being filed pursuant to Rule 14a-6 and will be distributed to
interested parties beginning May 6, 1996.
May 6, 1996
The attached kit includes background information and other data to assist
your understanding of the friendly merger between Kansas City Power & Light
Company and UtiliCorp United Inc.
It is important that you know that this merger of equals, which will create a
diversified energy company with assets exceeding $6.8 billion and more than
2.2 million customers, is predicated on delivering value to all of our key
constituencies, from our shareholders and employees to the customers and
communities we serve. We believe that the enclosed material makes a
compelling case about the enduring benefits of this partnership.
The KCPL/UtiliCorp combination is driven by:
- - An aggressive strategy for domestic and international growth, made possible
with the merger of two companies with complementary strengths, geographic
and asset diversity and visionary management
- - Realistic cost savings, in excess of $600 million, determined by an
independent consultant as well as employees from both companies
- - The ability to lower rates, improve service and provide innovative energy
products for our customers, and to increase job opportunities for our
employees
- - An attractive dividend policy that will treat both KCPL and UtiliCorp
shareholders very competitively
We hope these materials are helpful and we are confident that after reviewing
the attached information, you will reach the same conclusion we have: that a
merger of equals between KCPL and UtiliCorp is a perfect fit for both
companies -- as well as investors.
If you have any questions, about the enclosed material, please call KCPL
Investor Relations at 1-800-245-5275 or UCU Investor Relations at
1-800-487-6661.
<PAGE>
This material is being filed pursuant to Rule 14a-6 and will be used in
certain meetings with various parties beginning May 6, 1996.
UTILICORP UNITED/KANSAS CITY POWER & LIGHT
A DIVERSIFIED ENERGY COMPANY POISED FOR GROWTH
THE STRATEGIC MERGER WILL BLEND THE BEST OF TWO WORLDS: A CONSERVATIVELY
MANAGED, WELL-CAPITALIZED FINANCIAL POSITION WITH AN AGGRESSIVE,
STRATEGIC APPROACH TO DOMESTIC AND INTERNATION GROWTH
GROWTH STRATEGY:
- - New products and services
- - Alliances and partnerships
- - Non-regulated businesses
- - Mergers and acquisitions
- - Global initiatives
- -------------------------------------------------------------------------------
DIVIDEND:
THE BOARD OF DIRECTORS INTEND TO RECOMMEND AN INITIAL DIVIDEND
OF $1.85 PER SHARE, AN 18.6 PERCENT INCREASE FOR KCPL SHAREHOLDERS
AND A 15.2 PERCENT BOOST FOR UTILICORP SHAREHOLDERS.
THE NEW COMPANY WILL DELIVER ENDURING, DYNAMIC GROWTH -- POSITIONED AT THE
LEADING EDGE OF AN INDUSTRY UNDERGOING SIGNIFICANT CHANGE -- AND
REFLECTING PROVEN GROWTH STRATEGIES OF BOTH PREDECESSOR COMPANIES
STRENGTHS: INITIATIVES:
UTILICORP UNITED UTILICORP UNITED
- - Diverse service territory and - EnergyOne
range of products and services - Novell partnership
- - Non-regulated operations over - Australia acquisition
10 years - UtilCo Group - James River
- - Brand recognition and investment in New Zealand
marketing infrastructure - Sold oil and gas reserves
- - International presence
- - Operational excellence
KANSAS CITY POWER & LIGHT KANSAS CITY POWER & LIGHT
- - Low-cost provider of electricity - Low cost power producers
- - Superior plant performance - Superior performance
- - Leader in bulk power market of Wolf Creek
- - Innovative technologies - Open access tariff filed
- - Strong balance sheet, - Expansion into China
dividend growth
- - Unregulated expansion
- - Vibrant service territory
This merger is credible, achievable, and strategic
<PAGE>
This material is being filed pursuant to Rule 14a-6 and will be used by
employees to prepare for presentations to interested parties beginning May 6,
1996.
ONE MINUTE POINTS
If you do not have the opportunity to give a presentation, please make sure to
do at least following:
- - Make sure you tell the money managers, brokers, etc. to vote. Remind them
that "NO VOTE IS A VOTE AGAINST THE UCU/KCPL MERGER."
- - SELL THE DEAL. This is the only deal, this is the best deal.
- - There is no Western deal on the table and there may never be a deal.
- - Provide them with merger information. ENCOURAGE THEM TO CALL KCPL AT
1-800-245-5275 OR UCU AT 1-800-487-6661 WITH QUESTIONS.
<PAGE>
This material is being filed pursuant to Rule 14a-6 and will be used be
employees to prepare for presentations to interested parties beginning May 6,
1996.
TALKING POINTS
Aggressively addressing money managers and brokerages will play a vital role
in targeting those shareholders who hold stock in street name to assume that
they vote. Remember, no vote is a vote against the UCU/KCPL merger, and we
want to ensure that we reach as many shareholders as possible to relate the
positive messages of the merger.
- - There is only one deal on the table. The only and best deal for all
stakeholders is the January 19 agreement for the merger of equals between
UtiliCorp and KCP&L.
- - Remember a no vote is a vote against the UCU/KCPL merger.
- - An aggressive strategy for domestic and international growth, made possible
with the merger of two companies with complementary strengths, geographic
and asset diversity and visionary management.
- - Realistic cost savings, in excess of $600 million, determined by an
independent consultant as well as employees from both companies.
- - The ability to lower rates, improve service and provide innovative energy
products for our customers and to increase job opportunities for our
employees.
- - An attractive dividend policy that will treat shareholders of the new company
very competitively without jeopardizing credit quality.
- - The deal has been approved by both boards, the purchase price and dividend are
real.
OUR MERGER IS STRATEGIC, CREDIBLE, ACHIEVABLE
<PAGE>
This material is being filed pursuant to Rule 14a-6 and will be used by
various employees to prepare for questions in various meetings with
interested parties beginning May 6, 1996.
SELL THE DEAL Q&A
The following is a list of possible questions you may be asked and their
corresponding answers; please familiarize yourself with these questions and
answers as well as the information enclosed in your packet before calling
upon the targeted firms.
IT IS IMPORTANT TO NOTE THAT YOU MAY NOT HAVE THE ANSWERS TO EVERY QUESTION
ASKED. DO NOT FEEL PRESSURED TO GIVE AN IMMEDIATE RESPONSE. IN THE EVENT
THAT YOU DO NOT KNOW THE APPROPRIATE ANSWER, TELL THE INDIVIDUAL THAT YOU
WILL REFER THE QUESTION TO A REPRESENTATIVE FROM THE COMPANY AND THAT THEY
WILL BE CONTACTED SHORTLY FOR FURTHER EXPLANATION OR CLARIFICATION.
Remember to be firm and direct, but more importantly, continually "sell the
deal." Reinforce that this is the only "real" deal on the table. The merger
of equals will create a diversified energy company with the entrepreneurial
spirit and financial strength to succeed in an increasingly competitive
environment.
Q1. DO YOU THINK YOUR DIVIDEND OF $1.85 IS VIABLE? CAN YOUR EARNINGS PER SHARE
SUPPORT THAT DIVIDEND? WHAT DO YOU SEE AS YOUR PAYOUT RATIO?
A. This dividend is viable. Both companies have a proven track record for
significant growth. Our merger is based on an aggressive strategy for
domestic and international growth, made possible by our combination of
complementary strengths, geographic and asset diversity and visionary
management. Our target payout ratio is in the low 80's. Based on this
target, we feel comfortable with the recommended dividend level.
Q2. HOW IS THE VOTE GOING?
A. Under SEC rules we cannot comment on the results of the proxy solicitation.
Q3. IT SEEMS THAT THE CORNERSTONE OF UTILICORP'S GROWTH STRATEGY IS BASED ON
MARKETING INITIATIVES. WILL THE NEW COMPANY CONTINUE THAT STRATEGY?
A. Our merger is based on a compelling growth strategy. This is a strategic
merger that will blend a conservatively managed, well-capitalized financial
position with an aggressive strategy and potential for domestic and
international growth.
[BUSINESS MARKETING magazine recently named UtiliCorp in a ranking of top
ten marketers. UtiliCorp is the first utility company to be honored with
this notable ranking. We were ranked ahead of AT&T and just behind
Microsoft.]
<PAGE>
Q4. ARE YOUR COST SAVINGS REALISTIC? HOW DID YOU ARRIVE AT A COST SAVINGS IN
EXCESS OF $600 MILLION?
A. Yes. Our synergies analysis is based on FERC guidelines and was determined
with the input of three hundred employees from both companies as well as an
independent consultant.
Q5. IS UTILICORP WILLING TO RAISE ITS BID? (TO BE ANSWERED BY UCU
REPRESENTATIVE)
A. There is only one deal on the table. The only and best deal for all
stakeholders is the January 19 agreement for the merger of equals between
UtiliCorp and KCP&L.
Q6. WILL KCP&L'S CREDIT RATING SUFFER BY A MERGER WITH UTILICORP? (TO BE
ANSWERED BY KCPL REPRESENTATIVE)
A. We believe that our merger will deliver significant and enduring value
without jeopardizing credit quality. A merger with UtiliCorp actually
lowers our business risk through service territory diversification and
lessening the concentration of nuclear assets.
Q7. WHY WOULD UTILICORP WANT TO TAKE ON THE NUCLEAR RISK OF WOLF CREEK? (TO BE
ANSWERED BY UCU REPRESENTATIVE)
A. Wolf Creek is one of the best run plants in the United States. UtiliCorp
would not be interested in merging with any utility that had exposure to
Nuclear problems. The combined company will have 26% of its net plant as a
percent of total assets in Wolf Creek.
Q8. WHY DID THE KCPL BOARD REJECT THE WESTERN BID? (TO BE ANSWERED BY KCPL
REPRESENTATIVE)
A. KCPL and Western do not share the same vision for the future. The
UtiliCorp/KCPL merger is the only deal on the table. Western has not put
any deal on the table and may never. The merger of equals will create a
truly unique company that will benefit all key stakeholders, based on a
compelling growth strategy for the future.
<PAGE>
Q9. YOUR COMPANIES HAVE MADE SEVERAL ACCUSATIONS AGAINST WESTERN RESOURCES. IS
THIS A BATTLE OF EGOS? (TO BE ANSWERED BY KCPL REPRESENTATIVE)
A. We are not here to bash Western Resources or talk about their supposed
"offer." We are here to tell you about the only deal on the table.
Western has not put any deal on the table and may never. We are providing
you with all necessary information to help you analyze our merger
agreement.
Q10. IN RECENT YEARS, MERGERS HAVE BEEN MOTIVATED MAINLY BY COST REDUCTION. HOW
DO ANTICIPATE YOUR SHAREHOLDERS TO REACT TO A MERGER BASED ON GROWTH?
A. We have received a very positive reaction from our shareholders. They
realize the importance of long term value. While our merger provides
realistic and significant synergies, the compelling focus is on a strategy
for domestic and international growth. Our merger will create a truly
unique company: one with customer focus and the growth characteristics of a
diversified energy services provider, supported by the operating and
financial strengths of a core utility business.
<PAGE>
URGENT!
This package contains important information about the proposed merger between
Kansas City Power & Light (KLT) and UtiliCorp United (UCU).
It is important that you give the KLT & UCU shareholders with your firm an
opportunity to vote prior to May 22.
PLEASE FORWARD PROXY STATEMENTS TO KLT & UCU SHAREHOLDERS ASAP!
This only one transaction before the shareholders and it offers immediate
benefits:
INITIAL DIVIDEND OF $1.85
(18.6% increase for KLT and 15.2% for UCU)
- --Backed by real savings and strategic growth plans--
SEE DETAILS INSIDE
