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KANSAS CITY POWER & LIGHT AND UTILICORP UNITED MAIL PROXIES,
SET MAY 22 FOR ANNUAL MEETINGS TO APPROVE PROPOSED MERGER
KANSAS CITY, MO, April 9, 1996 -- UtiliCorp United
(NYSE: UCU) and Kansas City Power & Light Company (NYSE:
KLT) today are mailing the joint proxy statement and
prospectus concerning their previously announced merger
which will be voted on at their respective annual meetings
of shareholders on May 22.
In the document, the companies have detailed their
belief that the merger offers "significant strategic and
financial benefits to each company and to their respective
stockholders, as well as to their employees and customers
and the communities in which they transact business."
In their respective letters to shareholders, Drue
Jennings, chairman and president of KCPL, and Richard C.
Green, Jr., chairman and chief executive officer of
UtiliCorp, said, "This merger of equals will create a
combined enterprise that will be well-positioned for an
increasingly competitive energy environment."
Jennings said the strategic advantages of the new
company will include "substantial operating efficiencies,
increased ability to diversify operations and grow in a
prudent manner, and superior marketing skills."
Green said the new company "will also enjoy greater
opportunities for earnings and dividend growth through the
combination of UtiliCorp's and KCPL's equity, management,
human resources and technical expertise."
Both KCPL and UtiliCorp have a history of consistent
dividend growth. Although it is premature to commit, it is
the current intention of KCPL and UtiliCorp to maintain
initial dividends of the new company which will be at least
in the range of those currently being paid.
In their proxy statement, the companies said that as a
merged entity they would be able to rapidly develop and
deploy innovative customer services, especially those using
advanced information technology. These services will reach
a wider customer base than would be possible with each
company operating alone.
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They also said the merger will result in the increased
ability to diversify existing operations through
acquisitions of energy related, non-regulated assets or
entities, development and marketing of new products and use
of new technology, thereby assisting in counteracting
potential decreases in revenue caused by increased
competition in the utility industry. The companies share
the view that the energy industry has entered an era of
inevitable, accelerating change that will have a significant
impact on the future competitive position of utilities and
their ability to maintain and increase earnings.
Other merger benefits outlined in the proxy statement
include:
* Lower purchasing costs through economies of scale
and increased bargaining strength.
* Holding future electric rate increases below what
would otherwise be necessary.
* Greater coordination of operations.
* Expanded management resources and the ability to
select leadership from a larger and more diverse
management pool.
* Increased size and stability with a more diverse
customer base.
* Enhanced access to capital markets.
* Stimulation of local economic growth and development.
* Reduced administrative costs.
* Cost savings in a variety of categories, estimated
to result in net savings of approximately $600
million over the 10-year period following the merger.
The KCPL annual meeting will be held at 10:00 a.m. CDT
on May 22 at the Nelson-Atkins Museum of Art in Kansas City.
The UtiliCorp annual meeting will be held at 2:00 p.m. CDT
at the Downtown Marriott Hotel in Kansas City.
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,
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Australia and Jamaica. In 1995 it launched EnergyOne(SM),
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.
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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