-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, NrKol3uu0g5Q/99ZGbuGIlnZwjSmM9GkQ6a1RguwQqOm4qFCH+/QWipFlGhLTI5g IKfByjTnLjZM9OAkIXbfVA== 0000054507-96-000064.txt : 19960716 0000054507-96-000064.hdr.sgml : 19960716 ACCESSION NUMBER: 0000054507-96-000064 CONFORMED SUBMISSION TYPE: DFAN14A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19960715 SROS: CSE SROS: NYSE SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: KANSAS CITY POWER & LIGHT CO CENTRAL INDEX KEY: 0000054476 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 440308720 STATE OF INCORPORATION: MO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: DFAN14A SEC ACT: 1934 Act SEC FILE NUMBER: 001-00707 FILM NUMBER: 96594877 BUSINESS ADDRESS: STREET 1: 1201 BALTIMORE AVE CITY: KANSAS CITY STATE: MO ZIP: 64106 BUSINESS PHONE: 8165562200 MAIL ADDRESS: STREET 1: PO BOX 418679 CITY: KANSAS CITY STATE: MO ZIP: 64141-9679 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: WESTERN RESOURCES INC /KS CENTRAL INDEX KEY: 0000054507 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 480290150 STATE OF INCORPORATION: KS FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: DFAN14A BUSINESS ADDRESS: STREET 1: 818 KANSAS AVE CITY: TOPEKA STATE: KS ZIP: 66612 BUSINESS PHONE: 9135756300 FORMER COMPANY: FORMER CONFORMED NAME: KANSAS POWER & LIGHT CO DATE OF NAME CHANGE: 19920507 DFAN14A 1 SCHEDULE 14A INFORMATION Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 Filed by the Registrant / / Filed by a Party other than the Registrant /X/ Check the appropriate box: / / Preliminary Proxy Statement / / Definitive Proxy Statement /X/ Definitive Additional Materials / / Soliciting Material Pursuant to Rule 14a-11(c) or or Rule 14a-12 KANSAS CITY POWER AND LIGHT COMPANY - ---------------------------------------------------------------------- (Name of Registrant as Specified In Its Charter) WESTERN RESOURCES, INC. - ---------------------------------------------------------------------- (Name of Person(s) Filing Proxy Statement) Payment of Filing Fee (Check the appropriate box): / / $125 per Exchange Act Rules 0-11(c)(1)(ii), 14a-6(I)(1), or 14a-6(I)(2) / / $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:* ----------------------------------------------------------------- 4) Proposed maximum aggregate value of transaction: ----------------------------------------------------------------- Set forth the amount on which the filing fee is calculated and state how it was determined. / / 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: ------------------------------------------------------------ 2) Form, Schedule or Registration Statement No.: ------------------------------------------------------------ 3) Filing Party: ------------------------------------------------------------ 4) Date Filed: ------------------------------------------------------------ /x/ Filing fee paid with preliminary filing. The following letters were sent to a shareholders on July 9-12, 1996 in response to their questions. The same letters may be used to respond to future shareholders if their questions are the same. July 9, 1996 Addressee Dear Addressee, Thank you for your note of June 27 concerning our offer to Kansas City Power & Light. I appreciate your kind comments concerning our proposal. We have made what we believe is a vastly superior financial offer to any other proposal being considered by Kansas City Power & Light and look forward to forming a very strong, regional energy company. In accordance with your request, enclosed is a copy of our annual report. I appreciate your support and look forward to working with you. Sincerely, John E. Hayes, Jr. Chairman of the Board and Chief Executive Officer This letter is neither an offer to exchange nor a solicitation of an offer to exchange shares of common stock of KCPL. Such offer is made solely by the Prospectus dated July 3, 1996, and the related Letter of Transmittal, and is not being made to, nor will tenders be accepted from or on behalf of, holders of shares of common stock of KCPL in any jurisdiction in which the making of such offer or the acceptance thereof would not be in compliance with the laws of such jurisdiction. In any jurisdictions where securities, blue sky or other laws require such offer to be made by a licensed broker or dealer, such offer shall be deemed to be made on behalf of Western Resources, Inc. by Salomon Brothers Inc or one or more registered brokers or dealers licensed under the laws of such jurisdiction. July 11, 1996 Addressee Dear Addressee, Thank you very much for your recent letter concerning our offer to merge with Kansas City Power & Light. As a Western Resources shareowner, please know that we have worked hard to create a respected reputation on business matters that, above all else, benefit shareowners, customers and the communities we serve. Part of those business efforts recently included the intense advertising campaign you mentioned. This campaign, launched following our merger offer to KCPL, played a significant role in reaching as many people -- shareowners, investors, employees and customers -- as possible with as much information as possible until we were able to take our offer directly to KCPL shareowners via the postal system. After careful consideration, these advertisements proved the most cost-effective method of reaching all audiences. As you also mentioned, we too recognize the opportunities the future holds. At its core, our offer to KCPL is a demonstrated interest in creating future opportunities with a neighboring utility company with very similar, strong operations, cost control practices, excellent and reputable service and a healthy mix of thoughtful controlled growth. Although our success does not hinge on the outcome of this merger, we believe a Western Resources/Kansas City Power and Light combination would be the most beneficial to shareowners, customers and employees. Again, thank you for sharing your comments. Sincerely, John E. Hayes, Jr. Chairman of the Board and Chief Executive Officer This letter is neither an offer to exchange nor a solicitation of an offer to exchange shares of common stock of KCPL. Such offer is made solely by the Prospectus dated July 3, 1996, and the related Letter of Transmittal, and is not being made to, nor will tenders be accepted from or on behalf of, holders of shares of common stock of KCPL in any jurisdiction in which the making of such offer or the acceptance thereof would not be in compliance with the laws of such jurisdiction. In any jurisdictions where securities, blue sky or other laws require such offer to be made by a licensed broker or dealer, such offer shall be deemed to be made on behalf of Western Resources, Inc. by Salomon Brothers Inc or one or more registered brokers or dealers licensed under the laws of such jurisdiction. July 11, 1996 Addressee Dear Addressee, Thank you for your recent letter regarding our proposed merger with Kansas City Power & Light. We also believe in the strengths of neighboring companies with strong reputations who work together for a successful future. In fact, we have had discussions with KCPL for some time concerning a possible merger. As you know, Western Resources and KCPL have overlapping service territories and more than $8 billion in combined assets. Today, more than $2 billion, or 25 percent, of those assets are jointly owned or operated. I appreciate your comments about potential combinations. At this time we believe a potential merger with KCPL offers the most significant benefits to our company and to you as a shareowner. Please know that we have worked hard to create a respected reputation on business matters that, above all else, benefit shareowners, customers and the communities we serve. Ours is clearly a well-thought, well-studied, sincere effort to build a partnership that will benefit all. Again, thank you for sharing your comments. Sincerely, John E. Hayes, Jr. Chairman of the Board and Chief Executive Officer This letter is neither an offer to exchange nor a solicitation of an offer to exchange shares of common stock of KCPL. Such offer is made solely by the Prospectus dated July 3, 1996, and the related Letter of Transmittal, and is not being made to, nor will tenders be accepted from or on behalf of, holders of shares of common stock of KCPL in any jurisdiction in which the making of such offer or the acceptance thereof would not be in compliance with the laws of such jurisdiction. In any jurisdictions where securities, blue sky or other laws require such offer to be made by a licensed broker or dealer, such offer shall be deemed to be made on behalf of Western Resources, Inc. by Salomon Brothers Inc or one or more registered brokers or dealers licensed under the laws of such jurisdiction. July 11, 1996 Addressee Dear Addressee, Thank you for your recent letter regarding our proposed merger with KCPL. We also believe in the strengths of neighboring companies with strong reputations who work together for a successful future. In fact, we have had discussions with KCPL for some time concerning a possible merger. As you know, Western Resources and KCPL have overlapping service territories and more than $8 billion in combined assets. Today, more than $2 billion, or 25 percent, of those assets are jointly owned or operated. I appreciate your comments about potential combinations. At this time we believe a potential merger with KCPL offers the most significant benefits to our company and shareowners. Thank you also for the information you shared regarding the new automated postal rate structure. As of July 1, Western Resources began its participation in Postal Reform 1996 and, as you pointed out, we anticipate substantial savings as a result. Again, thank you for sharing your comments. Sincerely, John E. Hayes, Jr. Chairman of the Board and Chief Executive Officer This letter is neither an offer to exchange nor a solicitation of an offer to exchange shares of common stock of KCPL. Such offer is made solely by the Prospectus dated July 3, 1996, and the related Letter of Transmittal, and is not being made to, nor will tenders be accepted from or on behalf of, holders of shares of common stock of KCPL in any jurisdiction in which the making of such offer or the acceptance thereof would not be in compliance with the laws of such jurisdiction. In any jurisdictions where securities, blue sky or other laws require such offer to be made by a licensed broker or dealer, such offer shall be deemed to be made on behalf of Western Resources, Inc. by Salomon Brothers Inc or one or more registered brokers or dealers licensed under the laws of such jurisdiction. July, 12, 1996 Addressee Dear Addressee, Thank you for sharing your letter to Mr. Jennings, and for your support of the Western Resources offer to merge with Kansas City Power & Light Company. Your observation that Western Resources kept its promises in the KPL/KGE merger seems to us to be a point that has gone unnoticed by the KCPL management. We believe the market place, however, is fully aware of our achievements and that in the end the endorsement of shareowners such as yourself will provide us the opportunity for success. Again, thank you for your support, and as always we will continue to work to enhance the value of your Western Resources investment. Sincerely, John E. Hayes, Jr. Chairman of the Board and Chief Executive Officer This letter is neither an offer to exchange nor a solicitation of an offer to exchange shares of common stock of KCPL. Such offer is made solely by the Prospectus dated July 3, 1996, and the related Letter of Transmittal, and is not being made to, nor will tenders be accepted from or on behalf of, holders of shares of common stock of KCPL in any jurisdiction in which the making of such offer or the acceptance thereof would not be in compliance with the laws of such jurisdiction. In any jurisdictions where securities, blue sky or other laws require such offer to be made by a licensed broker or dealer, such offer shall be deemed to be made on behalf of Western Resources, Inc. by Salomon Brothers Inc or one or more registered brokers or dealers licensed under the laws of such jurisdiction. The following press release was issued on July 15, 1996: WESTERN RESOURCES' CFO ISSUES MEMO TO THE STREET, QUESTIONS MAXIM EXECUTIVE COMPENSATION PLAN TOPEKA, Kansas, July 15, 1996 -- Steven L. Kitchen, Western Resources chief financial officer, today issued a memorandum to the financial community questioning the compensation plans for Maxim executive management for the proposed UtiliCorp/KCPL merger. The memorandum explains to analysts and the financial community in general that KCPL shareowners are being asked to approve, on their August 7 shareowner meeting ballot, an executive stock option plan worth $240 million based on KCPL's closing stock price last Friday. These shareowners also are being asked to approve a bonus plan worth up to $2 million per Maxim executive. "Management isn't just asking shareowners to consider the merger, but also to approve significant increases in potential compensation for itself," said Kitchen. "Shareowners certainly have the right to understand these compensation issues, and we encourage them to contact us or their brokers if they have questions." Attached is a copy of the memorandum sent earlier today. Western Resources (NYSE:WR) is a diversified energy company. Its utilities, KPL and KGE, operating in Kansas and Oklahoma, provide natural gas service to approximately 650,000 customers and electric service to approximately 600,000 customers. Through its subsidiaries, Westar Business Services, Westar Consumer Services, Westar Capital, and The Wing Group, energy-related products and services are developed and marketed in the continental U.S., and offshore. For more information about Western Resources and its operating companies, visit us on the Internet at http://www.wstnres.com. This news release is neither an offer to exchange nor a solicitation of an offer to exchange shares of common stock of KCPL. Such offer is made solely by the Prospectus dated July 3, 1996, and the related Letter of Transmittal, and is not being made to, nor will tenders be accepted from or on behalf of, holders of shares of common stock of KCPL in any jurisdiction in which the making of such offer or the acceptance thereof would not be in compliance with the laws of such jurisdiction. In any jurisdictions where securities, blue sky or other laws require such offer to be made by a licensed broker or dealer, such offer shall be deemed to be made on behalf of Western Resources, Inc. by Salomon Brothers Inc or one or more registered brokers or dealers licensed under the laws of such jurisdiction. The following memorandum was issued on July 15, 1996: MEMORANDUM TO: Analysts and the Financial Community FROM: Steven L. Kitchen, Western Resources, Chief Financial Officer DATE: July 15, 1996 RE: Maxim Executive Compensation Plans Questioned KCPL SHAREOWNERS SHOULD KNOW THERE IS MORE THAN ONE ISSUE ON AUGUST 7 UTILICORP/KCPL BALLOT KCPL shareowners are being asked to decide three issues at their August 7 special meeting. Only one ballot issue deals directly with the proposed merger with UtiliCorp. The other two deal solely with financial compensation for Maxim executive management following the merger of UtiliCorp and KCPL. WHAT ARE KCPL SHAREOWNERS REALLY VOTING FOR? KCPL shareowners are being asked to do the following: 1. Approve a management stock plan, which sets aside more than $240 million worth of stock in the new merged company (based on KCPL closing stock price on July 12, 1996) for Maxim executives. That is approximately 9 million shares of common stock for Maxim executives (see KCPL S-4 p. 77). Currently, the KCPL directors and executive officers own less than one percent of KCPL common stock. Under the plan, individual Maxim executives could receive as much as $16 million worth (at last Friday's close) or 600,000 shares per year (see KCPL S-4 p. 77). Based on the Pro Forma common shares projected to be outstanding following the proposed UtiliCorp/KCPL merger, this means the directors could award executive management approximately 8 percent of the new company common stock. 2. Approve a management bonus plan that allows short-term cash bonuses to Maxim executives up to $2 million per person, per year (see KCPL S-4 p. 77). JENNINGS' COMPENSATION JUMPS 191% The employment contract for Mr. Jennings, KCPL chairman of the board, president, and chief executive officer, is even richer than the initial $6 million estimate, as much as $8.350 million, plus benefits, if he leaves KCPL following the UtiliCorp merger for good reason (see KCPL S-4 F-1 para 1(b) and pg. F-4 para 5(a) 2). p. 2 - MEMORANDUM He can simply walk out the door after the third year with $5 million, plus benefits, in his pocket, no questions asked (see KCPL S-4 pg. F-4 para 5(a)(ii). Mr. Jennings will be eligible, if the UtiliCorp merger is approved, for annual bonuses of up to at least $1.04 million, making his total potential compensation of at least $1.67 million annually (see KCPL S-4 p. 19), which would also apply to Mr. Richard C. Green, UtiliCorp chairman and chief executive officer. That represents a 191 percent increase -- or almost three times -- for Mr. Jennings' total compensation for 1995. And, under the terms of the agreement, his salary can never be reduced. WHAT DOES THIS MEAN? It means much of the value projected by the UtiliCorp/KCPL proposal is earmarked for Maxim executives rather than the owners and customers. We believe KCPL shareowners should question the motives of the management-endorsed UtiliCorp proposal and KCPL management's rejection of the Western Resources $31 stock offer, which we continue to believe is financially superior. KCPL shareowners should vote AGAINST the UtiliCorp/KCPL proposal on the GOLD proxy card and begin the processing of tendering their shares to Western Resources. We encourage you to contact us if KCPL shareowners have questions or you wish to pass along comments. We also encourage you to provide to KCPL shareowners the 1-800-223-2064 telephone number of Georgeson & Company, who is assisting us, so they can discuss the benefits of our offer. And finally, we can provide to you a listing of KCPL management and board addresses and telephone numbers so KCPL shareowners can be heard. This memorandum is neither an offer to exchange nor a solicitation of an offer to exchange shares of common stock of KCPL. Such offer is made solely by the Prospectus dated July 3, 1996, and the related Letter of Transmittal, and is not being made to, nor will tenders be accepted from or on behalf of, holders of shares of common stock of KCPL in any jurisdiction in which the making of such offer or the acceptance thereof would not be in compliance with the laws of such jurisdiction. In any jurisdictions where securities, blue sky or other laws require such offer to be made by a licensed broker or dealer, such offer shall be deemed to be made on behalf of Western Resources, Inc. by Salomon Brothers Inc or one or more registered brokers or dealers licensed under the laws of such jurisdiction. -----END PRIVACY-ENHANCED MESSAGE-----