<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>
UtiliCorp United
and
Kansas City Power
& Light Company
combine to create
MAXIM ENERGIES, INC.
The perfect complementary merger...
[triangle graphic]
- - Customers
- - Shareholders
- - Employees
...delivers benefits to all key stakeholders
Major Industry Drivers
[photos showing various energy related activities]
- - Technology
- - New Entrants
- - Customers
- - Regulatory and Legislative Reform
Since 1983 UtiliCorp has . . .
- - Acquired and merged with 10 domestic electric and gas utilities spending
$858 million.
- - Purchased interests in 4 international electric utilities investing $426
million.
- - Established UtilCo group investing $206 million into 17 leveraged lease and
Independent Power Projects.
- - Established Aquila Energy acquiring $303 million of pipeline and gathering
assets.
Since 1994 . . .
- - Invested over $22.4 million in reengineering/branding infrastructure
posturing the company for future earnings growth.
UtiliCorp United Inc.
($ In Millions)
Total Growth 1985-1995
Percent Industry*
1985 1998 Increase Average
Net Assets $731 $3,886 431% 25%
Revenues 243 2,799 1,052% 33%
EBITDA 78.7 412.9 425% N/A
Net Income 26.9 79.8 297% 9%
Share Value $1,000 $3,999 299% 167%
% Increase Adjusted '95 Earnings
* Electric utility industry growth computed using "Value Line" historical
figures.
<PAGE>
Growth in Shareholder Value
[graph]
1985 $1,000
1986 1,539.43
1987 1,205.20
1988 1,665.49
1989 2,107.26
1990 2,091.46
1991 3,083.56
1992 3,162.00
1993 3,819.58
1994 3,392.51
1995 3,980.76
Stand-alone 10-year average total return is above the industry --
UCU: 17.3%; KCPL: 17.7%; industry: 13.1%
KCPL/UtiliCorp Operations Growth
[map of the United States with various international locations highlighted. Map
shows KCPL and UtiliCorp's service territory worldwide.]
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
Maxim's Growth Traits
- - 10 years experience operating competitive non-regulated businesses
- - Diverse products, territories, asset base and generating mix
- - 10 years investment in growth - $3 billion
- - Recognized leader in fuel procurement and generating technology
- - Top 10 in power marketing
- - Top 10 in gas wholesaling
- - High level of employee ownership
<PAGE>
Synergy Savings
($ In millions)
[chart]
[Bar chart]
Year 1 Year 2 Year 3 Year 4
Generate Energy 6.4 9.2 11.2 17.4
Serve Customers (.5) (.2) .2 .5
Information Technolgy 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
*Based on Ernst & Young Synergies Study
Projected EPS Contributions
[chart]
Year 1 Year 2 Year 3 Year 4
Synergy Savings .10 .16 .22 .25
International Enhancements .12 .08 .15 .15
New Products .05 .11 .16 .24
Additional Operational Benefits .08 .08 .07 .06
Energy Marketing Enhancements .04 .06 .04 .05
Access to Capital Markets
For Growth
[chart]
UCU, 1985, $65m
UCU, 1997, $320m
Maxim, 1997, $700m
<PAGE>
Strategic Marketplace Position
- - Operational excellence
- - Strong credit rating
- - National gas marketer/trader - 10.5 bcf/day (top 10)
- - National power marketer/trader - over 10,000 mwh/day (top 10)
- - First and dominant national brand - EnergyOne
- - Diverse products, territories, asset base and generating mix
- - Experience operating competitive non-regulated businesses
- - Competitive retail rates
Dividends
1996, UCU, $1.76
1996, KCPL, $1.58
1997, Maxim*, $1.85
*Management first year dividend recommendation.
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 synergy savings
- - 5-year period of rate stability
Amended Merger Agreement
- - Exchange ratio now 1-for-1
- - 1.096 was not achievable
- - Still provides real value to UCU shareholders
UtiliCorp Growth Strategy
[triangle graphic]
- - EnergyOne
- - Asset Growth
- - Operational Excellence
<PAGE>
Analysis of KCC Staff Rate Reduction Proposal
Rate Reduction Components
- ---------------------------------------------
KGE KPL
Allowed R.O.E.
to 10.5% $14.0m $9.5m
Special Contracts 21.0m ---
Fuel 21.0m 18.5m
Merger Savings (KPL/KGE) 8.0m 4.0m
Miscellaneous (5.5)m 14.5m
------ ------
Total Proposed
Rate Reduction $58.5m $46.5m
$105m
Source - Regulatory Research Associates
Focus Notes (5/24/96)
Western Resources Inc.
Pro-Forma Financial Projections with Acquisition of KCPL
[chart]
1996 1997 1998 1999 2000
Operating Income Before Net
Cost Savings 631.9 621.1 624.5 655.2 651.8
Net Cost Savings -- -- 43.3 76.8 93.8
Net Other Income (1) 38.4 67.4 61.0 79.6 85.7
Total 670.3 688.5 728.8 811.6 831.3
1) Home security, investment in ADT, and unidentified other non-regulated
activities
Source: WR SC 14D1 filed 7/8/96
WRI/KLT Pro-Forma EPS
1997 1998 1999 2000
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) 2.47 2.45 (2) 2.59 2.61 (2)
WRI SC 14DI Filing (7/8/96) 2.52 2.52 (2) 2.67 2.69
(1) Based on projected EPS growth of 3.0% - First Call
(2) Transaction costs related to merger result in nonrecurring charge of
$0.69/share 1998
Sources: First Call Estimate (6/19/96)
WRI S-4 Filing (4/22/96)
WRI S-4 Filing (6/19/96)
WRI SC 14D1 filing (7/8/96)
<PAGE>
The "Brick Wall"
[Image of a brick wall]
- - Missouri Business Combination Statute
- - Missouri Public Service Commission
- - PUHCA
- - Exchange offer condition requiring redemption of KCPL preferred shares
- - Hostile offer
Status Quo - law says KCPL does not have to sell
Western Resource Offer Cannot Be Completed
1. MISSOURI BUSINESS COMBINATION STATUTE - No Missouri corporation may engage
in a "business combination" with a shareholder owning more than 20% of such
corporation's outstanding stock for a period of 5 years after such shareholder
became an interested shareholder unless the board of directors of the
corporation approved the business combination prior to the date that the
shareholder became an interested shareholder (MGBCL Section 459).
2. MISSOURI PUBLIC SERVICE COMMISSION - In order for WRI to acquire any KCPL
shares, it must first receive approval of the MPSC. Further, WRI must also
receive approval from the MPSC to consummate the WRI merger.
The perfect complementary merger
[triangle graphic]
- - Growth-Oriented
- - Strategically Positioned
- - Operating and Financial Strengths
...delivers benefits to all key stakeholders
UCU/KCPL
FERC Regulatory Process
Timeline
- - 1/19/96, Merger Announcement
- - 3/29/96, FERC App/Testimony filed
- - 6/96 Amended, FERC App filed
- - 1st Half '97, Ferc Approval/ Merger Completion
- - FERC
- - Application and Testimony filed 3/29/96
- - Amended Application filed 6/96
- - Approval Obtained late 1996 early 1997
<PAGE>
UCU/KCPL
State Regulatory Process
Timeline
1/19/96 Merger Announcement
7/15/96 Iowa Hearing
8/1/96 W.Virginia decision
10/96 Missouri hearing
11/96 Kansas hearing
12/96 MO, KS, MN, IA & CO Procedural schedules established permitting all
approvals by 12/96
1st Half '97 Ferc Approval/ Merger Completion
MISSOURI
- - Application pending for merger agreement approval
- - Direct testimony of KCPL/UCU filed
- - October hearing schedules
- - Negotiations may lead to earlier approval
KANSAS
- - Application pending for approval of merger agreement
- - Direct testimony of KCPL/UCU filed
- - November hearing scheduled
- - Preliminary indications from commission staff that merger application can
be approved year end 1996
MINNESOTA, IOWA, WEST VIRGINIA, COLORADO
- - Application pending for approval of merger agreement
- - Direct testimony of UCU filed
- - Procedural schedules established permitting all approvals before year-end
MICHIGAN
- - Transfer authority to do business to new company in third quarter
INTERNATIONAL
- - Standard filing no hearings required
AUSTRALIA
Filed for approval with foreign investment review board
NEW ZEALAND
Filed with investment commission - approval received
<PAGE>
UtiliCorp United Inc.
($ In Millions)
Total Growth 1985-1995
Percent
1985 1995 Increase
Net Assets $731 $3,886 431%
Revenues 243 2,799 1,052%
EBITDA 78.7 412.9 425%
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
Maxim
RETAIL RATE PROFILE
Current/Proposed Rates
Annual Avg. $/Kwh
Customer Class Maxim Avg.* WRI** Regional*** National Avg.
Residential 8.0 8.5 7.0 8.6
Commercial 7.8 8.2 6.9 8.2
Industrial 2.5 5.8 5.0 6.2
* Maxim is average of KCPL, MPS, WPE-KS
** WRI is average of KGE, KPL
*** Regional is West North Central region which includes Iowa, Kansas,
Missouri, No. Dakota, and So. Dakota (EEI)
Source - Edison Electric Institute Avg. summer & winter rates 7/1/95 & 1/1/96
<PAGE>
Per Share Benefits of Merger
($ In millions, except per share amounts)
Yr. 1 Yr. 2 Yr. 3 Yr. 4
----- ----- ----- -----
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
UCU/KCPL
Projected Financial Information (1)
($ millions)
1996
UCU KCPL Combined
--- ---- --------
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)
(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
Executive Summary and Methodology
Summary of Synergies (000s)
[chart]
<PAGE>
EXECUTIVE SUMMARY AND METHODOLOGY
SUMMARY OF SYNERGIES (000s)
<TABLE>
<CAPTION>
GENERATE ENERGY DISTRIBUTE AND SERVE
TRANSPORT ENERGY CUSTOMERS
FUEL PROCUREMENT TRANSMISSION CUSTOMER SERVICE
<S> <C> <C> <C> <C> <C>
Staff $1,157 Capital Projects $4,078 Collections $528
Generation Options 2,675 Capital Components 4,646 CellNet 177
-------- Call Center 3,053
$3,826 Staff 6,698 Itron 614
------- -------
$15,422 $4,372
SYSTEM GENERATION DISTRIBUTION
Combined System Capital Projects $3,061
Dispatch $107,414 Distribution/Eng/
Alternative Plan Plan Design 3,360
Construction 161,020 Meter Shop 1,326
-------- Dist. Dispatch 9,047
$268,434 -------
$16,794
<CAPTION>
<S> <C> <C> <C>
GENERATION PROCESSES Noncapital Labor $141,451
Staff $25,430 Capital Labor 15,117
EMS 3,838 Noncapital Expenditures 290,065
O&M 13,427 Capital Expenditures 159,697
-------- TOTAL SYNERGIES $606,331
$42,695
Present Value of Total Synergies $331,635
Avoided New Hires 36
Eliminated Positions 202
TOTAL FTEs 238
(1) Numbers may not tie to rounding.
<CAPTION>
PURCHAS'G/MATR'LS & INFORMATION EXEC & ADMIN SUPPORT
FACILITIES TECHNOLOGY
<S> <C> <C> <C> <C> <C>
PURCHASING & ENTERPRISE SUPPORT FINANCIAL SUPPORT
MATERIALS MGMT Enterprise Support $46,875 FUNCTION LABOR
Supplier Leverage -------- Accounting $21,048
(Materials) $5,907 $46,875 Planning & Budgeting 6,390
Supplier Leverage Finance 5,149
(Services) 28,589 CIS Audit 2,816
Generation Matr'ls 710 Customer Information Risk Management 0
Freight 909 Systems $16,125 --------
Staff 14,623 -------- $35,403
-------- $16,125
$50,738 NONFINANCIAL
DATA CENTER SUPPORT FUNCTION LABOR
CONSOLIDATION Human Resources $5,526
Data Center Rates & Regulation 2,133
Consolidation $32,840 Environmental 2,220
-------- Govmt Relations 2,220
$32,840 Communications 2,913
Legal 1,409
OTHER IT ISSUES --------
End User Support $2,792 $16,421
AM/FM Consolidation 1,565
Telecommunications 5,219 FINANCIAL SUPPORT -
Staff 2,786 RELATED EXPENDITURES
-------- Finance $11,132
$13,362 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)
*Based on Ernst & Young Synergy Study
Growth Record
(10 yr. combined growth percent)
- - Gas sales/transportation 1,075%
- - Electric sales 179%
- - Total sales 421%
- - Total customers 250%
- - Total assets 200%
- - Non-regulated businesses reached $1.6 billion
</TABLE>
