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KCPL takeover imminent?
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February 7, 1997: 11:08 a.m. ET
Western Resources reportedly close to sealing $2 billion stock deal
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NEW YORK (CNNfn) - In what would be the first successful hostile takeover in the utility industry, Western Resources Inc. reportedly will announce in the next few days the acquisition of Kansas City Power & Light for about $2 billion in stock.
According to published reports, the transaction could win approval by KCPL's board as early as Friday afternoon. Western's board reportedly approved the proposed deal Tuesday. The transaction is valued at $32 per share in a tax-free transaction.
Western chairman John E. Hayes Jr. reportedly will keep his job at the company's Topeka headquarters. KCPL chairman Drue Jennings will become vice chairman of the combined company, heading up the electrical division in Kansas City.
Western Resources, which also started a $3.5 billion hostile bid in December for security firm ADT Ltd., would cement its position as a force in the Midwest by combining Kansas City Power's 430,000 customers in Missouri with its 1.2 million gas and electric customers in Kansas and Oklahoma.
The agreement would be a sharp reversal for Jennings, who spent months trying to fight off Western, which launched its bid back in July.
KCPL agreed in January 1995 to be acquired by UtiliCorp United Inc. for $1.35 billion in stock. Western's move led Utilicorp to boost its offer to $1.58 billion. KCPL shareholders turned down the offer in August, and UtiliCorp dropped the bid. 
--Will Morton
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KCPL
Western Resources
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