sec document
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. 6)(1)
The Topps Company, Inc.
-----------------------
(Name of Issuer)
Common Stock, $.01 Par Value
----------------------------
(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
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
April 19, 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)
--------------------------
(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 ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 2,547,700
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
2,547,700
-----------------------------------------------------------------
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 ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 2,547,700
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
2,547,700
-----------------------------------------------------------------
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 ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 100
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
100
-----------------------------------------------------------------
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
--------------------------------------------------------------------------------
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 ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 2,547,900
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
2,547,900
-----------------------------------------------------------------
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!
---------------------- ----------------------
CUSIP No. 890786106 13D Page 6 of 12 Pages
---------------------- ----------------------
================================================================================
1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
ARNAUD AJDLER
--------------------------------------------------------------------------------
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 ITEM 2(d) OR 2(e) / /
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
--------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 2,301
OWNED BY -----------------------------------------------------------------
EACH 8 SHARED VOTING POWER
REPORTING
PERSON WITH - 0 -
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
-0-
-----------------------------------------------------------------
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. 6 ("Amendment No. 6") to the
Schedule 13D filed by the undersigned. This Amendment No. 6 amends the Schedule
13D as specifically set forth.
Item 4 is hereby amended to add the following:
On April 19, 2007, Arnaud Ajdler, a director of the Issuer,
delivered a letter to the other members of the Issuer's Board. A copy of the
letter is attached hereto as Exhibit 5 and is incorporated herein by reference.
In the letter, Mr. Ajdler criticizes the Board for not soliciting comments from
any of the three dissenting directors with regard to the preliminary merger
proxy statement (the "Merger Proxy") prior to its filing with the SEC on April
17, 2007, and also for not making drafts of the Merger Proxy available to the
dissenting directors. Also in the letter, Mr. Ajdler criticizes the Board for
not providing all of the relevant facts in the Merger Proxy regarding certain
events and circumstances surrounding the Proposed Transaction, and Mr. Ajdler
provides a few examples of what he believes to be "half-truths" presented by the
Board in the Merger Proxy.
Item 7 is hereby amended to add the following exhibits:
5. Letter from Arnaud Ajdler to the Members of the Board of
Directors of the Issuer, dated April 19, 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: April 19, 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 10-12
Directors of the Issuer, dated April 19, 2007.
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CUSIP No. 890786106 13D Page 10 of 12 Pages
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April 19, 2007
BY EMAIL AND FACSIMILE
Board of Directors of The Topps Company, Inc.
c/o Mr. Steven Gartner
Willkie Farr & Gallagher LLP
787 Seventh Avenue
New York, New York 10019
Dear Fellow Members of the Board:
I have reviewed the preliminary proxy statement (the "Merger Proxy") filed
by The Topps Company, Inc. ("Topps" or the "Company") on April 17, 2007. The
fact that the Topps Board did not solicit comments from Timothy Brog, John Jones
or me (the "Objecting Directors") or even make available to us drafts of the
Merger Proxy before filing it with the SEC is unjustifiable and is another
example of the Topps Board's disregard for its stockholders' representatives and
basic corporate governance.
As a fiduciary, it is therefore my duty to set forth for the stockholders
the omitted part of the story, which certain other members of the Topps Board
apparently do not want the Company's stockholders to know.
Set forth below are just a few of the many "half-truths" that you have
presented in the Merger Proxy:
o THE HALF-TRUTH REGARDING BIDDER C: You do not make clear that at the April
16, 2007 Board meeting, I was the director who voted in favor of declaring
Bidder C an "excluded party," a determination required by the Board under the
Merger Agreement in order for the Board to continue negotiations and
discussions with a bidder following the end of the "go-shop" period. You also
fail to mention in the Merger Proxy that I favored a declaration of Bidder C
as an "excluded party" for the following reasons: (1) the proposed purchase
price was $1 more per share, (2) the proposal was not contingent on
financing, (3) the amount of liquidity in the financial system is at an
unprecedented level and it would be highly unlikely that Bidder C would not
get financing for this transaction, (4) Bidder C made concessions regarding
the deal terms, (5) this deal would be highly strategic for Bidder C and (6)
there would be potential of creating deal tension between the bidders to
maximize stockholder value.
o THE HALF-TRUTH REGARDING THE RECOMMENDATION OF STRATEGIC ALTERNATIVES: You
have made several incomplete statements in the Merger Proxy regarding the
Objecting Directors' analysis and recommendations regarding strategic
alternatives to maximize stockholder value. First, you mischaracterized the
Objecting Directors' recommendation of a special dividend over a large share
buyback at a meeting of the Topps Board. You state in the Merger Proxy that
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CUSIP No. 890786106 13D Page 11 of 12 Pages
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the Objecting Directors "unanimously recommended the payment of a special
dividend because, among other things, in the second committee's view, `Topps'
stock price is not materially undervalued to its intrinsic value,' and `the
stock is not particularly cheap.'" What you conveniently fail to mention,
however, is that the Objecting Directors expressly stated that their
valuation considerations assumed the continued employment of certain members
of senior management. If you had provided the complete story, the quote of
the Objecting Directors in the Merger Proxy would have read something like:
"With existing senior management in place, the stock is not particularly
cheap and we therefore recommend the payment of a special dividend; however,
were certain members of senior management to be replaced, the stock would be
significantly undervalued and we would advocate a large share buyback." You
fail to mention that on several occasions I recommended a large share buyback
instead of a special dividend were the Company to replace certain members of
senior management.
You also conveniently fail to disclose that the most recent stock repurchase
program that was approved by the Board - prior to the election of Mr. Brog,
Mr. Jones and me - had a top price of $10.62 per share. I do not understand
how management and the Topps Board on the one hand can recommend buying
shares up to $10.62 per share, but on the other hand approve the sale of the
Company at $9.75 per share as the alternative that maximizes stockholder
value, particularly given the improvements in the Company's financial
performance in the first three quarters of fiscal year 2007.
o THE HALF-TRUTH REGARDING MANAGEMENT'S "ADJUSTED CASE" PROJECTIONS: You
conveniently fail to mention in the Merger Proxy that the "adjusted case"
projections prepared by management and used by Lehman Brothers in its
fairness analysis appeared for the first time only on January 25, 2007, after
the $9.75 price had been determined. Before that time, the Topps Board had
seen and worked only with the "management" projections. Without the "adjusted
case" projections which significantly reduced the "management" projections
previously provided to the Topps Board, the Proposed Merger would clearly not
be within the range of fairness of the discounted cash flow analysis.
If the Proposed Merger is consummated, Madison Dearborn and Tornante will
stand to reap the benefits of the Company's initial strategic turnaround
results, as opposed to the long-term stockholders who have waited patiently
through years of poor operating and stock performance under the current
management team for the underlying value of their shares to be unlocked.
o THE HALF-TRUTH REGARDING THE COMPANY'S SALE PROCESS: In the days following
the announcement of the Proposed Merger, a Company spokeswoman made comments
to the press suggesting that the Company had been actively soliciting bids
for the sale of the Company for the past two years. The Company spokeswoman
was quoted in a news article as stating the following:
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CUSIP No. 890786106 13D Page 12 of 12 Pages
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"Over the past two years, with the assistance of Lehman Brothers Inc., we
have examined all opportunities to deliver value to Topps stockholders,
and no other superior proposals have emerged in this time frame."
I reiterate my belief expressed in my March 14 letter to the Board that this
statement is incomplete because it gives the incorrect impression that Topps
was shopped or that alternative proposals were solicited before entering into
a merger agreement at $9.75. The Merger Proxy indicates that the Company only
talked to 3 financial buyers (Bidder A, Bidder B, and Tornante) before
entering into a deal with Tornante. The Merger Proxy also makes it clear that
Topps never approached Bidder C, its main competitor for its entertainment
division, to see if it had an interest in buying the Company. The Merger
Proxy also does not mention that Bidder C had expressed interest in pursuing
a transaction with Topps even before the announcement of a transaction with
Madison Dearborn and Tornante.
o THE HALF-TRUTH REGARDING MY OPPOSITION TO THE PROPOSED MERGER: You continue
to mischaracterize my opposition to the Proposed Merger. The Merger Proxy
states that "Messrs. Brog and Ajdler indicated, among other things, that they
opposed the transaction because there was not, in their view, a full auction
of the Company." You conveniently omit that my opposition to the deal first
and foremost stems from the fact that the price is inadequate. At a mere 3%
premium based on the average closing prices of the 20 trading days preceding
the signing of the Merger Agreement, this buyout is not in the best interest
of the Company's stockholders and it does not maximize stockholder value.
I reiterate my position that the existing Proposed Merger is not in the best
interest of the Company's stockholders because the per share merger
consideration is wholly inadequate and does not provide full and fair value to
the Company's stockholders.
Regards,
/s/ Arnaud Ajdler
--------------------------------------
Arnaud Ajdler