AES CORPORATION
425, 2000-11-07
COGENERATION SERVICES & SMALL POWER PRODUCERS
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                                                      Filer: The AES Corporation
                           Pursuant to Rule 425 under the Securities Act of 1933
                                                   Commission File No. 001-12291

                                                     Subject Company: Gener S.A.
                                                   Commission File No: 001-13210


These materials contain forward-looking statements concerning the financial
condition, results of operations and business of AES following the consummation
of its proposed acquisition of Gener and the anticipated financial and other
benefits of such proposed acquisition. In some cases, you can identify forward
looking statements by the words "will", "believes", "plans", "would", or similar
expressions. These forward looking statements are not guarantees of future
performances and are subject to risks and uncertainties and other important
factors, including those that could cause actual results to differ materially
from expectations based on forward looking statements made in this press release
or elsewhere. For a description of certain of these risks please refer to AES's
and Gener's filings with the SEC.

                                    * * * * *

These materials are for informational purposes only. It is not an offer to buy
or a solicitation of an offer to sell any shares of AES common stock. The
solicitation of offers to buy Gener common stock will only be made pursuant to a
prospectus and related materials that AES expects to send to Gener shareholders.
These securities may not be sold, nor may offers to buy be effected prior to the
time the registration statement becomes effective. This communication shall not
constitute an offer to sell or the solicitation of an offer to buy, nor shall
there be any sale of these securities in any state in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such state.

                                    * * * * *

AES intends to file a Tender Offer Statement and an Exchange Offer Registration
Statement with the Securities and Exchange Commission as soon as practicable. We
urge investors and security holders of Gener to read carefully the U.S. exchange
offer regarding the proposed transaction when it becomes available because it
will contain important information about the transaction. Investors and security
holders may obtain a free copy of the U.S. exchange offer when it is available
and other documents filed by AES and Gener with the Securities and Exchange
Commission at the Securities and Exchange Commission's Web site at www.sec.gov.
The U.S. exchange offer and these other documents may also be obtained for free
from D.F. King & Co., Inc., the Information Agent, by calling 1-800-755-3105.

                                    * * * * *

For more general information visit our web site at www.aesc.com or contact
investor relations at [email protected]. The list aes-pr-announce is an
automated mailing list and can be found on the investing page of our web site.
Those who subscribe to this list will receive updates when AES issues a press
release.

                                    * * * * *

This document is being filed pursuant to Rule 425 under the Securities Act of
1933.

                                       2

Tender Offer
for Gener Shares

November 2000

  1. Introduction
  2. The AES Corporation
  3. Tender Offer
  4. Conclusion

    5. Introduction

    • AES is pleased to present tender offers to all shareholders of Gener
    • AES believes its offers are better for shareholders than the TotalFinaElf proposal
    • Copec, Gener’s largest shareholder, has stated that it intends to tender all its shares pursuant to the Chilean offer
    • We urge you to vote for the elimination of the 20% limit and against the TotalFinaElf offer at the November 28 meeting

    2

    1. Introduction
    2. The AES Corporation
    3. Tender Offer
    4. Conclusion

    AES is the leading global power company

    • AES is the largest global power company:
      • 17 MM distribution customers worldwide
      • 137 generation plants with over 49,000 MW capacity
      • Operations in 28 countries throughout Latin America, U.S., Europe and Asia
      • 56,000 AES people worldwide
      • US$ 28 billion market cap
    • Mission: Serve the world’s need for electricity
    • Guiding principles: Fairness, fun, integrity and social responsibility
    • Proven track record

    4

    AES’s presence in Latin America

    Consistent and strong financial performance

    AES stock performance

    • AES trades an average of 2.3 MM shares daily or approximately US$ 140 MM
    • Included in the S&P 500, and recently added to the Dow Jones Utility Average, which should further enhance liquidity

        AES is experienced in closing transactions for benefit of shareholders

        • IPALCO (U.S. utility) US$ 2,200 MM stock for stock
          transaction *
        • DRAX (3,960 MW UK power station) US$ 1,000 MM bond refinancing
        • Alicura (1,000 MW Argentine hydro) US$ 205 MM purchase
        • Mohave Bid to acquire 1,580 MW coal-fired plant for US$ 667 MM *
        • NIGEN (640 MW) acquired control from Tractebel for US$ 82 MM
        • Puerto Rico (454 MW) completed US$ 815 MM financing
        • EDC (Venezuelan utility) US$ 1,600 MM purchase

        * Denotes pending transaction

        8

        1. Introduction
        2. The AES Corporation
        3. Tender Offer
        4. Conclusion

        Summary of offers’ terms

        10

        Chilean offer

        • Open to all shareholders of Gener
        • Tender for 61.6% of total outstanding shares, equivalent to 75% of shares outstanding, excluding shares represented by ADSs
        • Purchase price payable in cash, in Ch$ equivalent to US$ 0.235294118 per share, at the average observed exchange rate of the 10 days prior to the expiration date of the Chilean offer
        • Proration if tendered shares in Chile exceed 3,466.6 MM shares
        • Offer subject, among other conditions, to:
          • the tender of at least a majority of outstanding shares
          • the amendment of the bylaws to eliminate the 20% ownership restriction
          • the rejection of the TotalFinaElf proposal in the November 28 shareholders’ meeting
          • the receipt of sufficient funds to purchase shares in the Chilean offer
        • Tender through a Remate on the Santiago Stock Exchange

        11

        US offer

        • Offer open to all holders of ADSs
        • ADS holders will be able to tender their shares for AES stock
        • ADS holders will be paid the same price as holders of shares
        • The US offer will be subject, among other conditions, to the closing of the Chilean offer
        • The US offer is expected to close the next business day following the Remate

          12

          All shareholders must vote

          • In order for the AES tender to succeed, shareholders must vote in favor of the bylaw amendment and against the TotalFinaElf proposal
          • The TotalFinaElf proposal requires only simple majority of a quorum of 51%. It is vital that you attend the meeting and vote your shares against this proposal
          • The bylaw amendment requires the approval of 75% of the outstanding shares. Your vote is very important.

          13

          Offer by AES vs. proposal by TotalFinaElf

          14

          Bid vs. historic Gener price

          Offer price represents a 40% premium over the last 10-day closing price average before announcement

          Gener price evolution

          Flow to Gener shareholders

          Financial performance of Gener

          Gener has not performed well over the last few years and thus has not created sufficient shareholder value

          Analysts’ recommendations

          Analyst Date Recommendation
          SSB Oct 2000 Underperform
          DB Sep 2000 Market perform
          DLJ Aug 2000 Market perform
          FIT Aug 2000 Sell
          BSCH May 2000 Underperform
          WDR Jan 2000 Sell
          Larraín Vial Jan 2000 Underperform

          Source: Analysts’ reports

          19

          1. Introduction
          2. The AES Corporation
          3. Tender Offer
          4. Conclusion

          Conclusion

          • AES offers all shareholders the opportunity to realize a control premium for their Gener shares
          • In order for the transaction to succeed, shareholders must vote FOR the elimination of the 20% ownership restriction limit and AGAINST the TotalFinaElf proposal

          21

          Tender Offer
          for Gener Shares

          November 2000

          Oferta de Adquisición de Acciones de Gener

          Noviembre de 2000

          1.    Introducción

          2.    The AES Corporation

          3.    Oferta de Adquisición de Acciones

          4.    Conclusión

          Introducción

          • AES tiene el agrado de presentar a los accionistas de Gener, ofertas de adquisición de acciones en Chile y EE.UU.
          • AES estima que sus ofertas son más convenientes para los intereses de los accionistas que la proposición de TotalFinaElf
          • Copec S.A., el mayor accionista de Gener, ha confirmado su intención de ofrecer en venta todas sus acciones en la oferta en Chile
          • Se necesita su voto a favor de la eliminación del límite de concentración de 20%, y en contra de la proposición de TotalFinaElf en la junta del 28 de noviembre

          2

          1.    Introducción

          2.    The AES Corporation

          3.    Oferta de Adquisición de Acciones

          4.    Conclusión

          AES es una empresa líder de energía global en el mundo

        • AES es la mayor empresa de energía eléctrica independiente en el mundo:

        • 17 millones de clientes de distribución en el mundo

        • 137 plantas generadoras con más de 49.000 MW de capacidad

        • Operaciones en 28 países de Latinoamérica, EE.UU., Europa y Asia

        • 56.000 personas en el mundo

        • Capitalización Bursátil: US$28.000 millones

        • Misión: Atender las necesidades de electricidad del mundo

        • Principios corporativos: equidad, diversión, integridad y responsabilidad social

        • Trayectoria probada

          4

          AES en Latinoamérica

          Desempeño financiero exitoso y consistente

          Desempeño de la acción de AES

        • El volumen promedio de transacciones de AES es de 2.3 millones de acciones diarios, o un equivalente a US$ 140 millones aproximadamente

        • Está incluida en el S&P 500 y recientemente se ha incorporado en el índice Dow Jones Utility Average, lo que debería aumentar su liquidez

          7

          Experiencia en ejecutar transacciones beneficiosas para los accionistas

          8

          1.    Introducción

          2.    The AES Corporation

          3.    Oferta de Adquisición de Acciones

          4.    Conclusión

          Términos generales de las ofertas

          Oferta Chile EE.UU.
          Tipo en efectivo canje de acciones
          Acciones (MM) hasta 3,466.6 todos los ADSs
          % del mercado 75% Todos
          Precio US$ 0,235294118 / acción US$ 16/ ADS
          Monto US$ 816 MM US$ 237 MM
          Agente Comprador Deutsche Securities C. de B. DB Alex Brown

          10

          Oferta en Chile

        • Abierta a todos los accionistas de Gener

        • Oferta por 61.6% del capital accionario, equivalente al 75% de las acciones, excluyendo los ADSs

        • Precio a pagar en efectivo, en pesos equivalentes a US$ 0. 235294118 por acción, de acuerdo al dólar observado promedio de los 10 días previos a la expiración de la oferta en Chile

        • Prorrata, en caso que las acciones ofrecidas vender superen 3.466,6 millones

        • Oferta sujeta a las siguientes condiciones, entre otras:

        • ofertas de venta por al menos la mayoria de las acciones de Gener

        • modificacion de los estatutos para eliminar el limite de propiedad de 20%

        • rechazo de la proposicion de TotalFinaElf en la junta del 28 de noviembre

        • obtencion de financiamiento suficiente para pagar la adquisicion de las acciones en la oferta en Chile

        • Venta a traves de un Remate a efectuarse en la Bolsa de Comercio de Santiago

          • 11

          Oferta en EE.UU.

        • Abierta a todos los tenedores de ADSs

        • Tenedores de ADSs podrán canjear sus ADSs por acciones de AES

        • Tenedores de ADSs recibirán el mismo precio que los accionistas chilenos

        • Oferta sujeta, entre otras condiciones, al cierre de la oferta en Chile

        • La oferta en EE.UU. se espera que cierre el siguiente día hábil después del Remate

          12

          Todos los accionistas deben votar

        • Para que tenga éxito la oferta de AES, los accionistas deben votar a favor de la modificación de estatutos y votar en contra de la proposición de TotalFinaElf.

        • La proposición de TotalFinaElf puede ser aprobada por mayoría simple sobre un quorum de 51%. Es vital que asistan a la junta y voten en contra.

        • La modificación de estatutos requiere la aprobación de 75% de las acciones con derecho a voto. Su voto es muy importante

          13

          Oferta de AES vs. proposición de TotalFinaElf

          14

          Oferta vs. precio histórico de Gener

          El precio de la oferta representa un 40% de premio respecto del precio de cierre promedio de los 10 dias bursatiles previos al anuncio

          15

          Evolución de precio de Gener

          El IPSA ha rentado más que Gener en los últimos 2 años

          16

          Flujo para el accionista de Gener

          17

          Desempeño financiero de Gener

          Gener no ha tenido un buen desempeno en los ultimos anos, y en consecuencia no ha creado suficiente valor para sus accionistas

          18

          Recomendaciones de analistas

          Recomendacion Fecha Analista
          SSB Oct 2000 Underperform
          DB Sep 2000 Market Perform
          DLJ Ago 2000 Market Perform
          FIT Ago 2000 Sell
          BSCH May 2000 Underperform
          WDR Ene 2000 Sell
          Larrain Vial Ene 2000Underperform

          Fuente: reportes de analistas

          19

          1.    Introducción

          2.    The AES Corporation

          3.    Oferta de Adquisición de Acciones

          4.    Conclusión

          Conclusión

          • AES ofrece a todos los accionistas la oportunidad de vender sus acciones de Gener con un premio
          • Para que la transacción se lleve a cabo, los accionistas deben votar A FAVOR de la eliminación del límite de concentración 20%, y votar EN CONTRA de la proposición de TotalFinaElf

          21

          Oferta de Adquisición
          de Acciones de Gener

          Noviembre de 2000



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