SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------
SCHEDULE TO
(Amendment No. 2)
(Rule 14d-100)
Tender Offer Statement Under Section 14(d)(1) or 13(e)(1)
of the Securities Exchange Act of 1934
KENETECH CORPORATION
(Name of Subject Company (Issuer))
KC MERGER CORP.
KC HOLDING CORPORATION
VALUEACT CAPITAL PARTNERS, L.P.
VA PARTNERS, L.L.C.
(Names of Filing Persons (Offerors))
Common Stock, Par Value $.0001 Per Share,
Together With The Associated Rights Attached Thereto
(Title of Class of Securities)
488878109
(CUSIP Number of Class of Securities)
Jeffrey W. Ubben
Secretary and Treasurer
KC Merger Corp.
KC Holding Corporation
c/o ValueAct Capital Partners, L.P.
One Maritime Plaza
Suite 1400
San Francisco, CA 94111
(415) 362-3700
(Name, Address and Telephone Number of Person Authorized to Receive Notices
and Communications on Behalf of Filing Persons)
Copies to:
Dennis M. Myers, Esq.
Kirkland & Ellis
200 East Randolph Drive
Chicago, IL 60601
(312) 861-2000
CALCULATION OF FILING FEE
Transaction Valuation* Amount of Filing Fee**
$34,548,971 $6,910
* Estimated for purposes of calculating the amount of the filing fee only.
Calculated by multiplying $1.04, the per share tender offer price, by
33,220,164, the sum of (i) 31,970,164 currently outstanding shares of Common
Stock sought in the Offer, (ii) outstanding options with respect to 750,000
shares of Common Stock and (iii) outstanding warrants with respect to
500,000 shares of Common Stock, in each case as of October 20, 2000.
** Calculated as 1/50 of 1% of the transaction value.
[X] Check the box if any part of the fee is offset as provided by Rule
0-11(a)(2) and identify the filing with which the offsetting fee was
previously paid. Identify the previous filing by registration statement
number, or the Form or Schedule and the date of its filing.
Amount Previously Paid: $6,910 Filing Party: KC Merger Corp.
Form or Registration No.: Schedule TO Date Filed: November 7, 2000
[_] Check the box if the filing relates solely to preliminary communications
made before the commencement of a tender offer.
Check the appropriate boxes to designate any transactions to which the statement
relates:
[X] third-party tender offer subject to Rule 14d-1.
[_] issuer tender offer subject to Rule 13e-4.
[X] going-private transaction subject to Rule 13e-3.
[X] amendment to Schedule 13D under Rule 13d-2.
Check the following box if the filing is a final amendment reporting the results
of the tender offer: [_]
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1
KC Holding Corporation
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
OO
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(D) or 2(E) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 11,365,458
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
0
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 0
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
0
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
11,365,458
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
Approximately 36%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
CO
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
KC Merger Corp.
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
OO
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(D) or 2(E) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 0
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
11,365,458
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 0
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
0
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
11,365,458
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
Approximately 36%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
CO
- ------------------------------------------------------------------------------
2
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
ValueAct Capital Partners, L.P.
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
OO
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 0
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
11,365,458
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 0
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
0
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
11,365,458
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
Approximately 36%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
PN
- ------------------------------------------------------------------------------
3
- ------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
VA Partners, L.L.C.
- ------------------------------------------------------------------------------
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
2 (a) [_]
(b) [X]
- ------------------------------------------------------------------------------
SEC USE ONLY
3
- ------------------------------------------------------------------------------
SOURCE OF FUNDS*
4
OO
- ------------------------------------------------------------------------------
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(D) or 2(D) [_]
5
- ------------------------------------------------------------------------------
CITIZENSHIP OR PLACE OF ORGANIZATION
6
Delaware
- ------------------------------------------------------------------------------
SOLE VOTING POWER
7
NUMBER OF 0
SHARES -----------------------------------------------------------
SHARED VOTING POWER
BENEFICIALLY 8
11,365,458
OWNED BY
-----------------------------------------------------------
EACH SOLE DISPOSITIVE POWER
9
REPORTING 0
PERSON -----------------------------------------------------------
SHARED DISPOSITIVE POWER
WITH 10
0
- ------------------------------------------------------------------------------
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11
11,365,458
- ------------------------------------------------------------------------------
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12
[_]
- ------------------------------------------------------------------------------
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13
Approximately 36%
- ------------------------------------------------------------------------------
TYPE OF REPORTING PERSON*
14
OO
- ------------------------------------------------------------------------------
4
This Amendment No. 2 (the "Amendment") amends and supplements the Tender
Offer Statement on Schedule TO filed by KC Merger Corp., a Delaware corporation
("Purchaser"), KC Holding Corporation, a Delaware corporation ("Parent"), and
ValueAct Capital Partners, L.P., a Delaware limited partnership ("VAC") on
November 7, 2000, as amended by Amendment No. 1 to Schedule TO filed on November
14, 2000 (the "Schedule TO") relating to the offer by Purchaser to purchase all
outstanding shares of common stock, par value $.0001 per share, and the
associated rights attached thereto (together, the "Shares"), of KENETECH
Corporation, a Delaware corporation (the "Company"), at a purchase price of
$1.04 per Share, net to the seller in cash, upon the terms and subject to the
conditions set forth in the Offer to Purchase dated November 6, 2000 (the "Offer
to Purchase"), and in the related Letter of Transmittal, copies of which are
attached as Exhibits (a)(1)(i) and (a)(1)(ii) to the Schedule TO (which,
together with any amendments or supplements thereto, collectively constitute the
"Offer"). VA Partners, L.L.C. has been added as a filing person to the Schedule
TO. Capitalized terms used but not defined in this Amendment shall have the
meaning assigned to them in the Offer to Purchase.
Items 1 through 9, and 11.
Items 1 through 9, and 11 of the Schedule TO, which incorporate by
reference the information contained in the Offer to Purchase, are hereby amended
and supplemented by incorporating by reference therein the information set forth
in the Supplement to Offer to Purchase, dated November 26, 2000.
Item 12. Exhibits.
Item 12 of the Schedule TO is hereby amended and supplemented by adding
thereto the following:
Exhibit No. Description
----------- -----------
(a)(1)(vii) Supplement to Offer to Purchase, dated November 26, 2000.
(a)(5)(vi) Pages 3 through 28 of the Quarterly Report on Form 10-Q
filed by the Company for the quarterly period ended
September 30, 2000 (incorporated by reference to the
Form 10-Q filed by the Company on November 14, 2000).
(c)(3) Schedule of the 823 U.S. acquisitions considered by
Houlihan Lokey.
(c)(4) Feasibility Assessment of the Proposed Astoria Energy
Project.
Item 13. Information Required by Schedule 13E-3. Item numbers below refer to
such items as contained in Schedule 13E-3.
Item 2. Subject Company Information, paragraphs (d) through (f):
(d) The information set forth in "The Tender Offer - Price Range of Shares;
Dividends" of the Offer to Purchase is incorporated herein by
reference.
(e) Not applicable.
(f) The information set forth in "Schedule B" of the Offer to Purchase
under the heading "Purchase of Shares" and in "The Tender Offer --
Certain Information Concerning Purchaser and Parent" is incorporated
herein by reference.
5
Item 4. Terms of the Transaction, paragraphs (c) through (f):
(c) Not applicable.
(d) The information set forth in the "The Tender Offer - Appraisal Rights"
and "Schedule C" of the Offer to Purchase is incorporated herein by
reference.
(e) The information set forth in "The Tender Offer - Provisions for
Unaffiliated Security Holders" of the Offer to Purchase is incorporated
herein by reference.
(f) Not applicable.
Item 5. Past Contacts, Transactions, Negotiations and Agreements,
paragraphs (c) and (e):
(c) The information set forth in the "Special Factors - Background of the
Transaction; Past Contacts, Negotiations and Agreements" of the Offer
to Purchase is incorporated herein by reference.
(e) The information set forth in the "Introduction," "Special Factors -
Interests of Certain Persons in the Offer and the Merger," and "The
Tender Offer" of the Offer to Purchase is incorporated by reference.
Item 6. Purposes of the Transaction and Plans or Proposals, paragraphs (b)
and (c)(8):
(b) The information set forth in the "Introduction," "Special Factors -
Purposes, Alternatives, Reasons, Effects and Plans," and "The
Tender Offer - The Transactions Agreements - The Merger Agreement"
of the Offer to Purchase is incorporated herein by reference.
(c)(8) The information set forth in the "Special Factors - Purposes,
Alternatives, Reasons, Effects and Plans" of the Offer to Purchase
is incorporated herein by reference.
Item 7. Purposes, Alternatives, Reasons and Effects:
(a)-(d) The information set forth in the "Introduction," "Special Factors -
Background of the Transaction; Past Contacts, Negotiations and
Agreements," "Special Factors -- Purposes, Alternatives, Reasons,
Effects and Plans," "Special Factors - Recommendation of the
Special Committee and the Board of Directors of KENETECH; Fairness
of the Transaction," "Special Factors - Reports, Opinions,
Appraisals and Negotiations," and "The Tender Offer" of the Offer
to Purchase is incorporated herein by reference.
Item 8. Fairness of the Transaction:
(a)-(f) The information set forth in the "Introduction," "Special Factors,"
and "Annex A," of the Offer to Purchase is incorporated herein by
reference.
Item 9. Reports, Opinions, Appraisals, and Negotiations:
(a)-(c) The information set forth in the "Introduction," "Special Factors -
Background of the Transaction; Past Contacts, Negotiations and
Agreements,"Special Factors - Recommendation of the Special
Committee and the Board of Directors of
6
KENETECH; Fairness of the Transaction," "Special Factors - Position
of Parent, Purchaser, VAC and Mr. Lerdal as to the Fairness of the
Offer and the Merger," "Special Factors - Reports, Opinions,
Appraisals and Negotiations," and "Annex A" of the Offer to
Purchase and Exhibit (c)(2) of the Schedule TO is incorporated
herein by reference.
Item 10. Source and Amounts of Funds or Other Consideration, paragraph
(c):
(c) The information set forth in "Special Factors - Reports, Opinions,
Appraisals and Negotiations" and "The Tender Offer - Fees and
Expenses" of the Offer to Purchase is incorporated herein by reference.
Item 12. The Solicitation or Recommendation, paragraphs (d) and (e):
(d)-(e) The information set forth in the "Introduction," "Special Factors -
Background of the Transaction; Past Contacts, Negotiations and
Agreements," "Special Factors - Purposes, Alternatives, Reasons,
Effects and Plans," "Special Factors -- Recommendation of the
Special Committee and the Board of Directors of KENETECH; Fairness
of the Transaction," "Special Factors - Interests of Certain
Persons in the Offer and the Merger," and "The Tender Offer" of the
Offer to Purchase is incorporated herein by reference.
Item 14. Persons/Assets, Retained, Employed, Compensated or Used,
paragraph (b):
(b) No officer, class of employees or corporate assets of the Company will
be utilized by Purchaser, Parent or VAC in the Offer.
7
After due inquiry and to the best of its knowledge and belief, each of the
undersigned certifies that the information set forth in this statement is true,
complete and correct.
Dated: November 27, 2000 Schedule TO, Schedule 13E-3 and Schedule 13D
KC MERGER CORP.
By: /s/ Jeffrey W. Ubben
Name: Jeffrey W. Ubben
Title: Secretary/Treasurer
KC HOLDING CORPORATION
By: /s/ Jeffrey W. Ubben
Name: Jeffrey W. Ubben
Title: Secretary/Treasurer
VALUEACT CAPITAL PARTNERS, L.P.
By: VA Partners, L.L.C.
Its: General Partner
By: /s/ Jeffrey W. Ubben
Name: Jeffrey W. Ubben
Title: Managing Member
VA PARTNERS, L.L.C.
By: /s/ Jeffrey W. Ubben
Name: Jeffrey W. Ubben
Title: Managing Member
8