SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934
Date of Report
(Date of earliest event reported): June 21, 1999
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SEMPRA ENERGY
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(Exact name of registrant as specified in its charter)
CALIFORNIA 1-14201 33-0732627
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(State of incorporation (Commission (I.R.S. Employer
or organization) File Number) Identification No.
101 ASH STREET, SAN DIEGO, CALIFORNIA 92101
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(Address of principal executive offices) (Zip Code)
(619) 696-2034
Registrant's telephone number, including area code-------------------
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(Former name or former address, if changed since last report.)
FORM 8-K
Item 5. Other Events
On June 21, 1999 Sempra Energy and KN Energy announced the
termination of the merger agreement the companies had announced
February 22, 1999. The press release describing the termination is
attached as Exhibit 99.1
Item 7. Financial Statements And Exhibits.
(c) Exhibits
99.1 Press Release issued June 21, 1999.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
SEMPRA ENERGY
(Registrant)
Date: June 21, 1999 By: /s/ F. H. Ault
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F. H. Ault
Vice President and Controller
EXHIBIT 99.1
Sempra Energy and K N Energy Terminate Merger Agreement
Media Contacts: Analyst Contacts:
Doug Kline Clem Teng
Sempra Energy Sempra Energy
(877) 866-2066 (877) 736-7727
www.sempra.com
Larry Pierce Steven P. Eshbach
K N Energy K N Energy
(303) 914-4751 (303) 763-3618
www.kne.com
SAN DIEGO and LAKEWOOD, Colo., June 21, 1999 -- Sempra Energy
(NYSE:SRE) and K N Energy, Inc. (NYSE:KNE) today announced that they
have mutually agreed to terminate their merger agreement, announced
Feb. 22, 1999.
Sempra Energy and K N Energy indicated that, as they worked
through the integration process, it became clear that the combined
company would not be able to realize the business objectives that
they originally anticipated. As a result, Sempra Energy and K N
Energy agreed that it was more prudent for both companies to pursue
their business objectives individually.
In connection with the termination, Sempra Energy and K N
Energy entered into a confidential termination and release agreement
on June 20, 1999, whereby they have agreed to release each other
from any claims relating to the proposed merger, to refrain from
soliciting the employees of one another for a two-year period, and
to refrain from acquiring any stock of or making any proposals to
acquire the other party for a three-year period. In addition, in
order to amicably terminate the transaction, Sempra Energy agreed to
reimburse K N Energy for a portion of its expenses incurred in
connection with the proposed merger in the amount of $5.95 million.
K N Energy, Inc., based in Lakewood, Colorado, is the nation's
sixth-largest integrated natural gas company with more than $8
billion in total assets and is one of the largest pipeline operators
with more than 25,000 miles of pipe. It has operations in 16 states,
including natural gas gathering, processing, marketing, storage,
transportation, energy commodity sales -- natural gas and natural
gas liquids; electric generation design, construction and operation;
and innovative services designed for consumers, utilities and
commercial entities.
Sempra Energy, based in San Diego, is a Fortune 500 energy
services holding company with 12,000 employees, revenues of $5.5
billion and more than 6 million natural gas and electric meters
serving 21 million customers. Through its eight principal
subsidiaries -- Southern California Gas Company, San Diego Gas &
Electric, Sempra Energy Trading, Sempra Energy Solutions, Sempra
Energy International, Sempra Energy Resources, Sempra Energy Utility
Ventures and Sempra Energy Financial -- Sempra Energy provides a
broad range of energy-related products and services. The company has
operations throughout the United States, Canada, Mexico and Latin
America.
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