P.M. BRIEFING : Kansas City P&L; Bids for Utility
Kansas City Power & Light said today it has made an $857-million tender offer for all shares of Kansas Gas & Electric Co.
Kansas City Power officials said the proposed merger would cut costs for both utilities and delay their need to add generating capacity.
“The only comment I can make is we have received the offer. We will evaluate it. We will respond after that evaluation is complete,” said Lyle Koerper, a Kansas Gas spokesman in Wichita.
The offer, for $27 in cash per common share, would be financed by a $1-billion credit agreement that Kansas City Power has signed with two banks, Westpac Banking Corp. and the First National Bank of Chicago, company officials said.
The tender offer is conditional on the approval of state and federal regulators, Kansas City Power officials said. Also, at least 90% of shares must be offered.
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