SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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SCHEDULE 13D
(Rule 13d-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO
RULE 13d-2(a)
(Amendment No. 5)(1)
The Topps Company, Inc.
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(Name of Issuer)
Common Stock, $.01 Par Value
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(Title of Class of Securities)
890786106
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(CUSIP Number)
STEVEN WOLOSKY, ESQ.
OLSHAN GRUNDMAN FROME ROSENZWEIG & WOLOSKY LLP
Park Avenue Tower
65 East 55th Street
New York, New York 10022
(212) 451-2300
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
March 14, 2007
------------------------------
(Date of Event Which Requires Filing of This Statement)
If the filing person has previously filed a statement on Schedule 13G to
report the acquisition that is the subject of this Schedule 13D, and is filing
this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the
following box |_|.
Note. Schedules filed in paper format shall include a signed original and
five copies of the schedule, including all exhibits. See Rule 13d-7 for other
parties to whom copies are to be sent.
(Continued on following pages)
(Page 1 of 12 Pages)
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(1) The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
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CUSIP No. 890786106 13D Page 2 of 12 Pages
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================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
CRESCENDO PARTNERS II L.P., SERIES Y
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
2,547,700
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY - 0 -
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 2,547,700
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,547,700
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.6%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN
================================================================================
* SEE INSTRUCTIONS BEFORE FILLING OUT!
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CUSIP No. 890786106 13D Page 3 of 12 Pages
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================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
CRESCENDO INVESTMENTS II, LLC
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
2,547,700
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY - 0 -
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 2,547,700
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,547,700
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.6%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
OO
================================================================================
* SEE INSTRUCTIONS BEFORE FILLING OUT!
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CUSIP No. 890786106 13D Page 4 of 12 Pages
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================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
CRESCENDO ADVISORS LLC
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
WC
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
100
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY - 0 -
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 100
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
100
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
Less than 1%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
OO
================================================================================
* SEE INSTRUCTIONS BEFORE FILLING OUT!
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CUSIP No. 890786106 13D Page 5 of 12 Pages
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================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
ERIC ROSENFELD
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
PF, OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
2,547,900
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY - 0 -
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON 2,547,900
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,547,900
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.6%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
================================================================================
* SEE INSTRUCTIONS BEFORE FILLING OUT!
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CUSIP No. 890786106 13D Page 6 of 12 Pages
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================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
ARNAUD AJDLER
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |X|
(b) |_|
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) OR 2(e) |_|
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
2,301
-----------------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY - 0 -
OWNED BY -----------------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON - 0 -
WITH -----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
- 0 -
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,301
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES |_|
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
Less than 1%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
IN
================================================================================
* SEE INSTRUCTIONS BEFORE FILLING OUT!
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CUSIP No. 890786106 13D Page 7 of 12 Pages
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The following constitutes Amendment No. 5 ("Amendment No. 5") to the
Schedule 13D filed by the undersigned. This Amendment No. 5 amends the Schedule
13D as specifically set forth.
Item 4 is hereby amended to add the following:
On March 14, 2007, Arnaud Ajdler, a director of the Issuer,
delivered a letter to the other members of the Issuer's Board criticizing the
Board for taking the following actions at a Board meeting held on Tuesday, March
13, 2007 (the "Board Meeting"):
(i) stripping the Ad Hoc Committee, of which Mr. Ajdler is a member
together with Messrs. Brog, Feder and Greenberg, of its authority to
monitor day-to-day developments during the "go-shop" period under
the Merger Agreement and granting such authority solely to Messrs.
Feder and Greenberg;
(ii) creating an Executive Committee of the Board consisting of Messrs.
Feder, Greenberg, Mauer, Nussbaum and Shorin and excluding the three
directors who voted against the Merger Agreement (including Mr.
Ajdler) and vesting the Executive Committee with the full power of
the Board, with only one limited exception that relates to the
Merger Agreement;
(iii) ruling out of order a motion at the Board Meeting that was duly made
and seconded to have the Issuer make corrective disclosure relating
to a certain misleading statement made to the press by a spokeswoman
of the Issuer; and
(iv) mischaracterizing certain statements of Mr. Ajdler relating to his
opposition to the deal and certain of his stated intentions with
respect to the Issuer.
A copy of the letter is attached hereto as Exhibit 4 and is
incorporated herein by reference.
Item 7 is hereby amended to add the following exhibits:
4. Letter from Arnaud Ajdler to the Members of the Board of
Directors of the Issuer, dated March 14, 2007.
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CUSIP No. 890786106 13D Page 8 of 12 Pages
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SIGNATURES
After reasonable inquiry and to the best of his knowledge and
belief, each of the undersigned certifies that the information set forth in this
statement is true, complete and correct.
Dated: March 14, 2007 CRESCENDO PARTNERS II, L.P., SERIES Y
By: Crescendo Investments II, LLC
General Partner
By: /s/ Eric Rosenfeld
----------------------
Name: Eric Rosenfeld
Title: Managing Member
CRESCENDO INVESTMENTS II, LLC
By: /s/ Eric Rosenfeld
----------------------
Name: Eric Rosenfeld
Title: Managing Member
CRESCENDO ADVISORS LLC
By: /s/ Eric Rosenfeld
----------------------
Name: Eric Rosenfeld
Title: Managing Member
/s/ Eric Rosenfeld
------------------
ERIC ROSENFELD
/s/ Arnaud Ajdler
------------------
ARNAUD AJDLER
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CUSIP No. 890786106 13D Page 9 of 12 Pages
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EXHIBIT INDEX
Exhibit Page
1. Letter from Arnaud Ajdler to the Members of the
Board of Directors of the Issuer, dated March 14, 2007. 10-12
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CUSIP No. 890786106 13D Page 10 of 12 Pages
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March 14, 2007
BY EMAIL AND FACSIMILE
Board of Directors of The Topps Company, Inc.
c/o Ms. Holly K. Youngwood
Willkie Farr & Gallagher LLP
787 Seventh Avenue
New York, New York 10019
Dear Fellow Members of the Board:
Yesterday morning, the Board of Directors of The Topps Company, Inc.
("Topps" or the "Company") set a new low in corporate governance. As described
in Topps' Form 8-K, the actions approved yesterday by a seven-to-three vote of
the Topps board are an insult to corporate democracy and the Company's
shareholders. One day, a Harvard Business School case study describing the
actions of this Board will be taught in business schools as a clear illustration
of poor corporate governance.
o Ad Hoc Committee: The Board appointed Allan Feder and Stephen Greenberg
with the power to monitor day-to-day developments during the "go-shop"
period and made clear that the Ad Hoc Committee, of which Tim Brog and I
are members (with Messrs. Feder and Greenberg), no longer has such
authority because in the Board's view, Mr. Brog and I could not adequately
represent the best interests of the Company's shareholders. I strongly
disagree. My views should be clear to the Board. I will not support a
transaction which fails to maximize value for Topps' shareholders. In my
opinion, the announced merger agreement does not maximize value. Common
sense would tell you that Tim Brog and I would be true proponents of
maximizing value during the "go-shop" period as opposed to two directors
who support the ill-advised transaction between the Company and a buyout
group led by Michael Eisner and Madison Dearborn Partners, LLC. Please
note that my primary opposition to the proposed transaction stemmed from
what I believe to be an inadequate offer price. In light of the Board's
actions yesterday, it should be clear that the Board's process is just as
egregious and inadequate as the offer price.
o Creation of an Executive Committee: Yesterday morning the Board created an
Executive Committee consisting of Messrs. Feder, Greenberg, Mauer,
Nussbaum and Shorin. The support that Tim Brog, John Jones and I received
at last year's annual meeting provided a strong signal that the
shareholders of the Company were ready to have representatives in the
boardroom who are committed to focusing on the shareholders' best
interests. The creation of the Executive Committee is a blatant step to
delegate virtually all actions of the Board to these five members, in
repudiation and total disregard of the wishes of the majority of Topps'
shareholders at a time when they most need full representation of their
best interests in the boardroom. Common sense would tell you that good
corporate governance allows for and even encourages good-faith
disagreement among Board members, not the establishment of an Executive
Committee to silence opposing views.
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CUSIP No. 890786106 13D Page 11 of 12 Pages
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o False and Misleading Statement: I have asked the Board to correct what I
believe is a misleading statement given to the press by a Company
spokeswoman. The Wall Street Journal, on March 7, 2007, wrote: "'Over the
past two years, we have been working with Lehman Brothers to examine all
opportunities to deliver value, and no other superior proposals emerged in
that time frame,' said a spokeswoman to the company." That statement gives
the false impression that Topps was shopped or that alternative proposals
were solicited before entering into a merger agreement at $9.75.
o Ramrodding of Board actions: Yesterday, a telephonic Board meeting was
held. None of the three directors who voted against the merger agreement
were provided with an agenda. When a motion to have Topps issue corrective
disclosure was duly made and seconded at yesterday's Board meeting, it was
ruled out of order by Mr. Shorin, the Chairman of the Board, because he
said it was not on the agenda. This motion was no different than any other
matter discussed at yesterday's Board meeting other than the fact that a
majority of the Board did not like the duly raised motion. Is this what
this majority of the Board believes to be good corporate governance?
o Mischaracterization of my comments: You quote my March 6, 2007 letter and
characterize my opposition to the deal as stemming solely from the fact
that the process that led to the Merger Agreement was flawed because the
Board did not shop the Company. You conveniently forget to mention that my
opposition to the deal first and foremost stems from the fact that the
price is inadequate. At a 3% premium based on the average closing prices
of the last 20 trading days, this buyout is not in the best interests of
the Company's shareholders and does not maximize shareholder value. If a
sufficiently attractive offer does not surface for Topps and shareholders
decide to vote down the merger agreement, I intend, along with Crescendo
Partners, to nominate a slate of directors to replace the current Board.
Despite what the Board alleges my intention to be in the Form 8-K, this
would not be for the purpose of taking control of the Company, but in
order to maximize value for all shareholders. In fact, Crescendo Partners
has been in situations like this before. In 2005, Crescendo Partners
solicited proxies to have shareholders vote against a merger agreement
between Computer Horizons Corp. (a public company in which Crescendo
Partners had a substantial investment) and another public company, which
valued Computer Horizons' common stock at approximately $3.00 per share.
Crescendo Partners believed the transaction undervalued Computer Horizons'
shares and that the transaction was not in the best interests of Computer
Horizons' shareholders. After successfully campaigning to block the
ill-advised merger, Crescendo Partners then ran a successful proxy contest
to elect an alternate slate of directors committed to maximizing
shareholder value. Computer Horizons has since sold its major business
units in three transactions and declared a liquidating distribution of $4
per share to its shareholders in the first of what is expected to be a
series of liquidating distributions aggregating approximately $4.75 per
share. Our intentions with respect to Topps are no different and we will
not allow them to be mischaracterized.
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CUSIP No. 890786106 13D Page 12 of 12 Pages
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I strongly urge the Company to reconstitute the Ad Hoc Committee, to
disband the Executive Committee and to make corrective disclosure. Topps
continues to ignore the will of its shareholders and continues to be run as a
private club. This must stop.
Yours truly,
/s/ Arnaud Ajdler