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EXHIBIT F
FOR IMMEDIATE RELEASE:
Contact: Jeffrey Ubben
ValueAct Capital Partners, L.P.
(415) 362-3700
Contact: Jeanne Carr
MacKenzie Partners, Inc.
(212) 929-5500
(800) 322-2885
KC MERGER CORP. COMPLETES SECOND STEP MERGER
WITH KENETECH CORPORATION
San Francisco, California - January 2, 2001 - KC Holding Corporation today
announced that it completed the merger between its wholly-owned subsidiary, KC
Merger Corp., and KENETECH Corporation on December 29, 2000. In the merger, KC
Merger Corp. was merged with and into KENETECH. The merger was completed
pursuant to the terms of the Agreement and Plan of Merger, dated as of October
25, 2000, as amended, among KENETECH, KC Merger Corp. and KC Holding
Corporation.
The merger was the second and final step in the acquisition of KENETECH by KC
Holding Corporation, a corporation controlled by ValueAct Capital Partners, L.P.
The first step, a cash tender offer by KC Merger Corp. to purchase all of
KENETECH's outstanding shares of common stock at a purchase price of $1.04 per
share, was completed on December 28, 2000.
Pursuant to the merger, the public stockholders of KENETECH who did not
tender their shares in the offer and who do not seek appraisal of their shares
pursuant to the provisions of applicable law had their shares converted into the
right to receive $1.04 per share in cash, upon presentation to Mellon Investor
Services, L. L. C. ("Mellon") of appropriate documentation by the holder of any
such shares of KENETECH common stock. Within the next few days, Mellon will
mail to non-tendering stockholders materials to be used to exchange KENETECH
stock certificates for such payment.
Upon consummation of the merger, KENETECH became a privately held
corporation, and the shares of KENETECH common stock will no longer be quoted on
the OTC Bulletin Board.
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