EXHIBIT (G)(6)
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(a) OF
THE SECURITIES EXCHANGE ACT OF 1934
Filed by the Registrant [_]
Filed by a Party other than the Registrant [X]
Check the appropriate box:
[_] Preliminary Proxy Statement
[X] Definitive Proxy Statement
[_] Definitive Additional Materials
[_] Soliciting Material Pursuant to Section 240.14a-11(c) or Section
240.14a-12
XXXXXXXX & XXXXX, INC.
(Name of Registrant as Specified in its Charter)
HARNISCHFEGER INDUSTRIES, INC.
and
DSFA CORPORATION
(Name of Persons Filing Proxy Statement)
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Payment of Filing Fee (Check the appropriate box):
[X] No fee required.
[_] Fee computed on table below per Exchange Act Rules 14a-6(i)(1)
and 0-11.
[_] Fee paid previously with preliminary materials:
[_] Check box if any part of the fee is offset as provided by Exchange Act
Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number, or
the Form or Schedule and the date of its filing.
(1) Amount Previously Paid:
(2) Form, Schedule or Registration Statement No.:
(3) Filing Party:
(4) Date Filed:
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SOLICITATION STATEMENT
OF
HARNISCHFEGER INDUSTRIES, INC.
AND
DSFA CORPORATION
TO CALL A
SPECIAL MEETING OF SHAREHOLDERS
OF
XXXXXXXX & XXXXX, INC.
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INTRODUCTION
This Solicitation Statement and the accompanying WHITE Written Demand Cards
("Written Demands") are being furnished to holders of outstanding shares of
Common Stock, $.10 par value per share ("Shares"), of Xxxxxxxx & Xxxxx, Inc.,
a Wisconsin corporation (the "Company"), in connection with the solicitation
of Written Demands to call a Special Meeting of shareholders of the Company.
The Written Demands are being solicited by Harnischfeger Industries, Inc., a
Delaware corporation ("Parent" or "Harnischfeger"), and DSFA Corporation (the
"Purchaser"), a newly formed Delaware corporation and wholly owned subsidiary
of Parent, for the purpose of demanding that the Company call a special
meeting of shareholders of the Company (the "Special Meeting") for the purpose
of considering and voting on proposals (together, the "Special Meeting
Proposals") to:
(1) remove all of the current members of the Board of Directors of the
Company (the "Company Board") and any person or persons elected or
designated prior to the Special Meeting to fill any vacancy or newly
created directorship;
(2) repeal each provision of the Company's By-laws (the "Company By-
laws") or amendments thereto (other than the amendment referred to in (3)
below) adopted subsequent to March 28, 1997, or adopted on or prior to that
date but not filed by the Company as an exhibit to any Current Report on
Form 8-K, Quarterly Report on Form 10-Q or Annual Report on Form 10-K of
the Company on or prior to March 28, 1997;
(3) amend Article III of the Company By-laws to fix the number of
directors of the Company at three; and
(4) elect Xxxxxxx X. Xxxxx, Xxxx X. Xxxxxx, and Xxxxxxx X. Xxxxx, Xx.
(together, the "Parent Nominees") as the directors of the Company,
effective immediately, to hold office until the annual meeting of
shareholders in 1998, 1999 and 2000, respectively, and until their
respective successors are elected and qualified.
If Proposal (3) is approved, the number of directors of the Company shall be
three, divided into three classes of one, one and one director, respectively.
THE WRITTEN DEMANDS WILL NOT CONFER ANY RIGHTS TO VOTE ON MATTERS BROUGHT
BEFORE THE SPECIAL MEETING AND NO PROXIES FOR SUCH VOTES ARE BEING PROVIDED
WITH THIS SOLICITATION STATEMENT. PARENT AND THE PURCHASER WILL SEND COMPANY
SHAREHOLDERS ADDITIONAL PROXY MATERIALS SOLICITING PROXIES TO VOTE ON THE
SPECIAL MEETING PROPOSALS.
On April 28, 1997, the Purchaser commenced a tender offer to purchase all
outstanding Shares (and associated Rights (as defined below)) at a price of
$19 per Share (and associated Right), net to the seller in cash, upon the
terms and subject to the conditions set forth in an Offer to Purchase dated
April 28, 1997 (the "Offer to Purchase") and in the related Letter of
Transmittal (the "Letter of Transmittal") (which, as either may be amended
from time to time, together constitute the "Offer"). The Offer will expire at
12:00 midnight, New York
City time, on Friday, May 23, 1997, unless the Offer is extended. Parent and
the Purchaser have also proposed that, following completion of the Offer, the
Purchaser would effect a merger with the Company (the "Proposed Merger") in
which holders of any remaining Shares would receive the same price per Share
as the price per Share to be paid in the Offer. The purpose of the Offer and
the Proposed Merger is to enable Parent to acquire control of, and the entire
equity interest in, the Company. The Special Meeting Proposals are intended to
facilitate and expedite the consummation of the Offer and the Proposed Merger
by removing the Company's current directors and replacing them with the Parent
Nominees, all of whom are committed, subject to their fiduciary duties, to,
among other things, giving the Company's shareholders the opportunity to
receive the consideration for their Shares contemplated by the Offer and the
Proposed Merger, as described more fully below. In the event the Parent
Nominees are elected and the Offer is consummated and the Purchaser and its
affiliates own at least a majority of the total voting power of all shares of
capital stock of the Company then outstanding, the Proposed Merger could be
consummated without the approval of the remaining shareholders (other than
Parent and the Purchaser). In such event, under certain circumstances,
shareholders of the Company may be entitled to dissenters' rights to object to
the Proposed Merger and demand payment of the "fair value" of their Shares in
cash. See Section 12 of the Offer to Purchase. As used herein, unless the
context otherwise requires, the term "Shares" shall include the associated
preferred share purchase rights (the "Rights") issued pursuant to the Rights
Agreement, dated as of August 23, 1995 (the "Rights Agreement"), between the
Company and Firstar Trust Company, as rights agent.
THE PARENT NOMINEES WILL, IF ELECTED, SUBJECT TO THEIR FIDUCIARY DUTIES, AS
DESCRIBED BELOW, BE ABLE TO ACT TO REDEEM THE RIGHTS OR OTHERWISE MAKE THEM
INAPPLICABLE TO THE OFFER AND THE PROPOSED MERGER AND TO APPROVE THE OFFER AND
PROPOSED MERGER UNDER SECTION 180.1141 (AS DEFINED HEREIN) AND TO TAKE SUCH
OTHER ACTIONS AS MAY BE NECESSARY TO GIVE ALL OF THE COMPANY'S SHAREHOLDERS
THE OPPORTUNITY TO ACCEPT THE PURCHASER'S OFFER AND RECEIVE $19 FOR EACH OF
THEIR SHARES. THE PARENT NOMINEES ARE COMMITTED, SUBJECT TO THEIR FIDUCIARY
DUTIES, TO GIVING YOU, AS THE OWNERS OF THE COMPANY, THE OPPORTUNITY TO ACCEPT
THE PURCHASER'S PENDING OFFER AND RECEIVE $19 IN CASH FOR YOUR SHARES PURSUANT
TO THE OFFER.
COMPLETING, SIGNING, DATING AND RETURNING THE ENCLOSED WHITE WRITTEN DEMAND
CARD WILL HELP ENABLE YOU, AS THE OWNERS OF THE COMPANY, TO DECIDE WHETHER YOU
WILL HAVE THE OPPORTUNITY TO SELL YOUR SHARES TO THE PURCHASER FOR $19 PER
SHARE IN CASH PURSUANT TO ITS PENDING OFFER. ACCORDINGLY, PARENT AND THE
PURCHASER URGE YOU TO COMPLETE, SIGN AND DATE THE ENCLOSED WHITE WRITTEN
DEMAND CARD AND RETURN IT IN THE ENCLOSED, PRE-ADDRESSED ENVELOPE IMMEDIATELY.
Under the Wisconsin Business Corporation Law (the "WBCL") and the Company
By-laws, a special meeting of the Company's shareholders is required to be
held upon the written demand of the holders of record of shares representing
at least 10% of all the votes entitled to be cast on any issue proposed to be
considered at the special meeting (the "Requisite Holders"). Under the Company
By-laws, the Company Board may fix a record date to determine the shareholders
entitled to make such a demand (a "Demand Record Date"). On April 28, 1997,
the Purchaser (as the holder of record of 1,000 Shares) delivered to the
Secretary of the Company a written request that the Company Board fix a Demand
Record Date and, in accordance with the Company By-laws, on May 8, 1997, the
Company announced that the Demand Record Date is May 16, 1997. The Company By-
laws also provide that shareholders executing Written Demands, under certain
circumstances, must agree to reimburse the Company for certain costs in
connection with the Special Meeting. Parent and the Purchaser have agreed to
bear those costs and reimburse shareholders executing Written Demands for all
such costs and for any reasonable expenses incurred in connection therewith.
See "Solicitation of Written Demands; Calling of the Special Meeting" below.
The Special Meeting has not been called, and no date, time, place or record
date for the Special Meeting has been set. Once Parent has received Written
Demands from the Requisite Holders and delivers them to the Company, the
Company is required under the Company By-laws to call and hold the Special
Meeting within specified time periods. See "Solicitation of Written Demands;
Calling of the Special Meeting" below. Shareholders will be notified of the
date, time, place and record date of the Special Meeting after they are fixed.
The principal executive offices of the Company are located at 000 Xxxx Xxxxxx,
Xxxx xx Xxx, Xxxxxxxxx 00000.
ii
According to the Company's Annual Report on Form 10-K for the Fiscal Year
Ended December 31, 1996 (the "Company 10-K"), there were 33,186,898 Shares
outstanding as of March 10, 1997 and, as of December 31, 1996, there were
outstanding pursuant to one or more of the Company's stock or option or other
incentive plans (the "Company Plans") options to purchase 1,105,712 Shares,
576,271 of which were exercisable as of such date. According to the Company's
Proxy Statement dated as of March 21, 1997 filed with the Securities and
Exchange Commission (the "Commission") in connection with the Company's Annual
Meeting of Shareholders to be held April 30, 1997 (the "Company Annual Meeting
Proxy Statement"), on March 13, 1997, certain members of the Company's senior
management team and other key employees purchased an aggregate of 282,355
Shares upon the exercise of options in connection with the Company's
Management Stock Purchase Program (the "MSPP") adopted by the Company that
same day. According to the Company's publicly filed documents, the Company has
no class of capital stock issued and outstanding as of the date hereof other
than the Shares. Parent owns 789,600 Shares beneficially (1,000 of which are
beneficially owned and held of record by the Purchaser). Based on information
set forth in the Company 10-K, such Shares represent approximately 2.4% of the
Shares outstanding, on a primary share basis, as of March 10, 1997.
Based upon the foregoing, assuming no options have been issued or exercised
since December 31, 1996 (other than options exercised in connection with the
MSPP, which are assumed to have been issued on the date of exercise) or will
be issued or exercised prior to the Demand Record Date, and assuming no Shares
have been issued or cancelled since December 31, 1996 (other than Shares
issued upon the exercise of options in connection with the MSPP) or will be
issued or cancelled prior to the Demand Record Date, Written Demands from the
holders of at least 2,557,326 Shares (excluding the 789,600 Shares owned by
Parent and the Purchaser) must be received by Parent and the Purchaser and
timely delivered to the Company in order to properly demand that the Company
call the Special Meeting. The actual number of Shares with respect to which
Written Demands must be received will depend upon the number of Shares issued
and outstanding on the Demand Record Date. For purposes of the foregoing
calculations, the Purchaser has assumed that the Shares issued in connection
with the MSPP are outstanding; however, Parent has asserted in litigation
against the Company that as a result of the Company's economic interest in the
Shares nominally owned by individual executives (as disclosed in the Company's
publicly filed documents), Shares issued in connection with the MSPP are not,
for certain purposes, outstanding, but are instead treasury stock that may not
be voted and may not be counted toward certain calculations, including the
calculation of the number of shares required to call the Special Meeting. See
Section 15 of the Offer to Purchase. Any assumptions made herein are made
without prejudice to the Purchaser's position with respect to such issue.
According to the Company By-laws, in order for shareholders to demand the
Special Meeting, Written Demands must be received by the Secretary of the
Company within 70 days after the Demand Record Date.
THIS SOLICITATION IS BEING MADE BY PARENT AND THE PURCHASER AND NOT ON
BEHALF OF THE COMPANY'S BOARD OF DIRECTORS.
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iii
IMPORTANT
THE CALLING OF THE SPECIAL MEETING AND THE ELECTION OF THE PARENT NOMINEES
TO THE COMPANY BOARD WILL FACILITATE THE OFFER AND THE PROPOSED MERGER. IF YOU
WANT THE OPPORTUNITY TO RECEIVE THE CONSIDERATION CONTEMPLATED BY THE OFFER
AND THE PROPOSED MERGER, WE URGE YOU TO PROMPTLY COMPLETE, SIGN, DATE AND MAIL
THE ENCLOSED WHITE WRITTEN DEMAND CARD. FAILURE TO COMPLETE, SIGN, DATE AND
MAIL A WRITTEN DEMAND HAS THE SAME EFFECT AS OPPOSING THE CALL OF THE SPECIAL
MEETING.
Written Demands should be delivered as promptly as possible, by fax (both
sides) or by mail (using the enclosed envelope), to either of Parent's
information agents, Xxxxxxxxx & Company Inc. ("Xxxxxxxxx") and Xxxxxx-Xxxxx
Inc. ("Xxxxxx-Xxxxx", and together with Xxxxxxxxx, the "Information Agents").
Xxxxxxxxx'x address is Wall Street Plaza, New York, New York 10005. Xxxxxx-
Xxxxx'x address is 000 Xxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000.
IMPORTANT NOTE: IF ANY OF YOUR SHARES ARE HELD IN THE NAME OF A BROKERAGE
FIRM, BANK, BANK NOMINEE OR OTHER NOMINEE, ONLY IT CAN EXECUTE A WRITTEN
DEMAND WITH RESPECT TO SUCH SHARES AND WILL DO SO ONLY UPON RECEIPT OF YOUR
SPECIFIC INSTRUCTIONS. ACCORDINGLY, PLEASE CONTACT THE PERSON RESPONSIBLE FOR
YOUR ACCOUNT AND INSTRUCT THAT PERSON TO EXECUTE THE WHITE WRITTEN DEMAND.
This Solicitation Statement is dated May 15, 1997. This Solicitation
Statement and accompanying WHITE Written Demand card are first being furnished
to Company shareholders on or about May 16, 1997.
If you have any questions concerning the tender offer material you have
previously received, or need assistance tendering your Shares pursuant to the
Offer, please call Xxxxxx-Xxxxx at one of the following numbers: banks and
brokers call (000) 000-0000, all others call toll-free (000) 000-0000.
IF YOU HAVE ANY QUESTIONS REGARDING YOUR WRITTEN DEMAND, OR NEED ASSISTANCE
IN RETURNING YOUR WRITTEN DEMAND, PLEASE CALL:
GEORGESON & COMPANY INC.
Wall Street Plaza
New York, New York 10005
Banks and Brokers Call Collect: (000) 000-0000
All Others Call Toll-Free: (000) 000-0000
Facsimile: 212-440-9009
iv
PURPOSE OF THIS SOLICITATION;
REASONS FOR THE SPECIAL MEETING
The Purchaser commenced its Offer to purchase all outstanding Shares at a
price of $19 per Share (and associated Right), in cash, on April 28, 1997. The
purpose of the Offer and the Proposed Merger is to enable Parent to acquire
control of, and the entire equity interest in, the Company. The Offer, as the
first step in the acquisition of the Company, is intended to facilitate the
acquisition of all outstanding Shares. The Proposed Merger, as the second step
in the acquisition of the Company, is intended to facilitate the acquisition
of any Shares not acquired by the Purchaser in the Offer. The purpose of the
Special Meeting is to allow the shareholders of the Company to act to remove
certain obstacles to Parent's and the Purchaser's ability and willingness to
consummate the Offer and the Proposed Merger. Pursuant to this Solicitation
Statement, Parent and the Purchaser are soliciting Written Demands from
holders of outstanding Shares to call the Special Meeting. Once Parent has
received Written Demands from the Requisite Holders, Parent will deliver such
Written Demands to the Company, and the Company Board will thereafter be
required, pursuant to the Company By-laws and the WBCL, to cause the Special
Meeting to be called and held.
OBSTACLES TO THE OFFER
There are a number of obstacles to Parent's ability to consummate the Offer
and the Proposed Merger, which can be removed, absent the cooperation of the
Company's current Board of Directors, by the approval by the Company's
shareholders of the Special Meeting Proposals at the Special Meeting or at
another duly called and held special or annual meeting of the Company's
shareholders. These obstacles include the Company's "poison pill" Rights
Agreement and certain provisions of the WBCL restricting business
combinations, such as the Proposed Merger, that have not been approved by the
Company Board. To date, the Company Board has refused to remove these
obstacles to permit you, as the shareholders of the Company, to have the
opportunity to determine the future of your Company and your investment.
Rights Agreement. According to the Company 10-K and the Company's
Registration Statement on Form 8-A dated August 23, 1995 (the "Company 8-A"),
on August 23, 1995 the Company adopted the Rights Agreement and the Company
Board declared a dividend of one Right for each outstanding Share. The Rights
are described in the Company 8-A, and such description of the Rights is
summarized in Section 8 of the Offer to Purchase.
According to the Company 8-A, under the Rights Agreement, if the Purchaser
were to acquire 20% or more of the Shares, unless the Rights were previously
redeemed or invalidated or were otherwise rendered inapplicable to the Offer,
each holder of record of a Right (other than the Purchaser) would have the
right to receive Shares having a fair market value (calculated as provided in
the Rights Agreement) equal to twice the exercise price for such Rights. As a
result, the Rights could severely dilute the Purchaser's equity interest in
the Company and its voting power and thereby make the Purchaser's acquisition
of the Company prohibitively expensive.
However, the Company 8-A states that, under the Rights Agreement, the
Company Board may redeem the Rights in whole, but not in part, at a price of
$.01 per Right at any time prior to a person becoming an "Acquiring Person",
as defined in the Rights Agreement (generally, a person or group that becomes
the beneficial owner of 20% or more of the Shares). In addition, the Company
8-A also states that, other than provisions relating to the principal economic
terms of the Rights, the terms of the Rights may be amended by the Company
Board without the consent of the holders of the Rights, except that from and
after the Distribution Date (as defined in the Rights Agreement and in the
Offer to Purchase), no such amendment may adversely affect the interests of
the holders of the Rights.
On April 25, 1997, Parent and the Purchaser commenced an action in the
United States District Court for the Eastern District of Wisconsin against the
Company and certain of its directors, Harnischfeger Indus., Inc. v. Isles, et
al., C.A. No. 97-C-0488, alleging, among other things, (i) that the defendants
have violated the disclosure requirements of the Securities Exchange Act of
1934, as amended (the "Exchange Act"), and the
1
rules and regulations promulgated by the Commission thereunder, in connection
with disclosures in the Company's public filings concerning the Rights
Agreement, and (ii) that, under the circumstances present here, the defendants
have a fiduciary duty to redeem the Rights and/or to cause them to be
inapplicable to the Offer. As relief, the complaint filed in the action seeks,
among other things, injunctive relief (x) requiring the defendants to redeem
or to cause the redemption of the Rights and (y) prohibiting the defendants
from amending the Rights Agreement in any way other than to cause its
redemption or inapplicability to the Offer.
Business Combination Prohibition. Section 180.1141 of the WBCL ("Section
180.1141") prohibits certain business combinations and other transactions
(each, a "Section 180.1141 Transaction"), such as the Proposed Merger, between
a Wisconsin resident domestic corporation (such as the Company) and any
"Interested Stockholder" (defined generally as any person that, directly or
indirectly, owns or, subject to certain exceptions, has the right to exercise
10% or more of the voting power of the outstanding voting stock of a Wisconsin
resident domestic corporation) for a period of three years after the date the
person becomes an Interested Stockholder. After such three year period, a
Section 180.1141 Transaction between a Wisconsin resident domestic corporation
and such Interested Stockholder is prohibited unless (a) certain "fair price"
provisions are complied with, (b) the Section 180.1141 Transaction is approved
by the affirmative vote of the holders of a majority of the voting stock not
beneficially owned by the Interested Stockholder or (c) the acquisition of
stock resulting in such stockholder becoming an Interested Stockholder was
approved by the corporation's board of directors prior to the relevant
acquisition date.
The Section 180.1141 restrictions do not apply to a Section 180.1141
Transaction with an Interested Stockholder within three years of the date such
stockholder became an Interested Stockholder if either (x) the Interested
Stockholder's acquisition of the corporation's shares on the date the
Interested Stockholder became an Interested Stockholder or (y) the Section
180.1141 Transaction, is approved by the board of directors of the corporation
prior to the date on which the Interested Stockholder became an Interested
Stockholder.
EFFECT OF REMOVAL OF CURRENT DIRECTORS AND ELECTION OF PARENT NOMINEES
The potential effects of the Rights Agreement and Section 180.1141 prevent
Parent and the Purchaser from completing the Offer and the Proposed Merger,
absent the requisite action of the Company Board. To date, the Company Board
has refused to remove these obstacles to permit you, as the shareholders of
the Company, to have the opportunity to determine the future of your Company
and your investment. Parent and the Purchaser initiated the demand of the call
of the Special Meeting so that the Company's shareholders will have the
opportunity to consider and vote upon the Special Meeting Proposals, which
would result in the removal of all of the current members of the Company Board
and in the election of the Parent Nominees as the directors of the Company.
Parent and the Purchaser intend, after removal and replacement of the Company
Board, to enter into a merger agreement with the Company providing for the
acquisition of the Shares by the Purchaser as contemplated by the Offer and
the Proposed Merger. The Proposed Merger could be made available to the
Company's shareholders, in accordance with Section 180.1141 and without the
Rights being exercisable, with the approval of the Company Board.
THE PARENT NOMINEES WILL, IF ELECTED, SUBJECT TO THEIR FIDUCIARY DUTIES, AS
DESCRIBED BELOW, BE ABLE TO ACT TO REDEEM THE RIGHTS OR OTHERWISE MAKE THEM
INAPPLICABLE TO THE OFFER AND THE PROPOSED MERGER AND TO APPROVE THE OFFER AND
THE PROPOSED MERGER UNDER SECTION 180.1141 AND TO TAKE SUCH OTHER ACTIONS AS
MAY BE NECESSARY TO GIVE ALL OF THE COMPANY'S SHAREHOLDERS THE OPPORTUNITY TO
ACCEPT THE PURCHASER'S PENDING OFFER AND RECEIVE $19 FOR EACH OF THEIR SHARES.
ACCORDINGLY, DEMANDING A SPECIAL MEETING AND VOTING FOR THE PARENT NOMINEES
WILL ENHANCE YOUR CHANCES OF BEING ABLE TO TAKE ADVANTAGE OF THE OFFER.
In the event the Offer is not consummated because the Minimum Condition is
not satisfied or for any other reason, the Parent Nominees, if elected,
subject to their fiduciary duties (see "Special Meeting Proposals; Required
Vote" below), currently intend to support the efforts of Parent and the
Purchaser, if any, to acquire the Company or effect a business combination
with the Company by other means.
2
CONDITIONS OF THE OFFER
Because of the potential effects of the Rights Agreement and Section
180.1141, the Purchaser's ability and willingness to accept for payment Shares
tendered to it in the Offer, and to consummate the Proposed Merger, are
subject to certain terms and conditions, including (1) the Rights having been
redeemed by the Company Board or the Purchaser being satisfied, in its
reasonable judgment, that the Rights have been invalidated or are otherwise
inapplicable to the Offer and the Proposed Merger (the "Rights Condition"),
and (2) the Purchaser being satisfied, in its reasonable judgment, that the
restrictions contained in Section 180.1141 will not apply to the acquisition
of Shares pursuant to the Offer or the Proposed Merger (the "Business
Combination Condition"). Each of the Rights Condition and the Business
Combination Condition is likely to be satisfied if the Special Meeting
Proposals are approved and the current directors of the Company are removed
and replaced by the Parent Nominees.
The Offer is also subject to the condition that there must be validly
tendered prior to expiration of the Offer and not properly withdrawn a number
of Shares (the "Minimum Number of Shares") which, when added to the Shares
beneficially owned by the Purchaser and its affiliates, constitutes at least a
majority of the total voting power of all shares of capital stock of the
Company outstanding on a fully diluted basis on the date of purchase (the
"Minimum Condition"). For purposes of the Offer, "on a fully diluted basis"
means, as of any date, the number of Shares outstanding, together with Shares
that the Company could then be required to issue pursuant to options
outstanding at that date under the Company Plans (assuming all such options
are then exercisable) or otherwise (other than in connection with the Rights
Agreement). Based on publicly available information filed by the Company with
the Commission, and on certain assumptions set forth in the Offer to Purchase,
the Minimum Number of Shares would be approximately 16,497,883. The actual
Minimum Number of Shares will depend upon the facts as they exist on the date
of purchase. For purposes of the foregoing calculations, the Purchaser has
assumed that the Shares issued in connection with the MSPP are outstanding;
however, Parent has asserted in litigation against the Company that as a
result of the Company's economic interest in the Shares nominally owned by
individual executives (as disclosed in the Company's publicly filed
documents), Shares issued in connection with the MSPP are not, for certain
purposes, outstanding, but are instead treasury stock that may not be voted
and may not be counted toward certain calculations, including the calculation
of the number of shares required to call the Special Meeting. See Section 15
of the Offer to Purchase. Any assumptions made herein are made without
prejudice to the Purchaser's position with respect to such issue.
Certain other conditions to the Offer are described in Section 14 of the
Offer to Purchase. Subject to the applicable rules of the Commission, the
Purchaser expressly reserves the right, in its sole discretion, to waive any
one or more of the conditions to the Offer.
A copy of the Tender Offer Statement on Schedule 14D-1, which was filed by
Parent and the Purchaser with the Commission on April 28, 1997, and all
amendments thereto, may be obtained by mail from the Commission upon payment
of the Commission's customary charges, by writing to its principal office at
000 Xxxxx Xxxxxx, X.X., Xxxxxxxxx Xxxxx, Xxxx 0000, Xxxxxxxxxx, X.X. 00000.
Such material is also available for inspection and copying at the principal
office of the Commission at the address set forth immediately above, and at
the Commission's regional offices at Seven World Trade Center, 13th Floor, New
York, New York 10048 and Citicorp Center, 000 Xxxx Xxxxxxx Xxxxxx, Xxxxx 0000,
Xxxxxxx, Xxxxxxxx 00000. The Commission also maintains an Internet site on the
World Wide Web at that contains reports, proxy statements
and other information. The information also should be available at The Nasdaq
Stock Market, Inc., 0000 X Xxxxxx, X.X., Xxxxxxxxxx, X.X. 00000.
IF YOU BELIEVE THAT YOU SHOULD HAVE THE OPPORTUNITY TO DECIDE THE FUTURE OF
YOUR COMPANY AND TO RECEIVE $19 NET PER SHARE IN CASH FOR ALL OF YOUR SHARES,
PARENT AND THE PURCHASER URGE YOU TO COMPLETE, SIGN, DATE AND RETURN YOUR
WHITE WRITTEN DEMAND CARD PROMPTLY.
CALLING THE SPECIAL MEETING WILL BE AN IMPORTANT STEP IN SECURING THE
CONSUMMATION OF THE OFFER AND THE PROPOSED MERGER. HOWEVER, YOU MUST TENDER
YOUR SHARES PURSUANT TO THE OFFER IF YOU WISH TO PARTICIPATE IN THE
3
OFFER. YOUR EXECUTION OF THE WHITE WRITTEN DEMAND CARD DOES NOT OBLIGATE YOU
TO VOTE IN FAVOR OF THE SPECIAL MEETING PROPOSALS OR TO TENDER YOUR SHARES
PURSUANT TO THE OFFER, AND YOUR FAILURE TO EXECUTE THE WHITE WRITTEN DEMAND
CARD DOES NOT PREVENT YOU FROM VOTING IN FAVOR OF THE SPECIAL MEETING
PROPOSALS OR FROM TENDERING YOUR SHARES PURSUANT TO THE OFFER.
Parent intends to continue to seek to negotiate with the Company with
respect to the acquisition of the Company. If such negotiations result in a
definitive merger agreement between the Company and Parent, certain material
terms of the Offer may change and Parent may elect not to proceed with any
solicitation of proxies for use at the Special Meeting. Accordingly, such
negotiations could result in, among other things, termination or amendment of
the Offer and/or submission of a different acquisition proposal to the Company
shareholders for their approval.
If the Purchaser should terminate or materially amend the terms of the Offer
prior to the Special Meeting, Parent or the Purchaser will disseminate such
information regarding such changes to the Company's shareholders and, in
appropriate circumstances, will provide the Company's shareholders with a
reasonable opportunity to revoke their proxies prior to the Special Meeting.
SOLICITATION OF WRITTEN DEMANDS;
CALLING OF THE SPECIAL MEETING
Call of Special Meeting; Demand Record Date. Under the WBCL and the Company
By-laws, a special meeting of the Company's shareholders is required to be
held upon the written demand of the Requisite Holders. Under the Company By-
laws, the Company Board may fix a record date to determine the shareholders
entitled to make such a demand. The Demand Record Date may not precede the
date upon which the resolution fixing the Demand Record Date is adopted by the
Company Board and may not be more than 10 days after the date upon which the
resolution fixing the Demand Record Date is adopted by the Company Board. The
Company By-laws provide that the Company Board shall promptly, but in all
events within 10 days after the date on which a valid request to fix a Demand
Record Date is received, adopt a resolution fixing the Demand Record Date and
shall make a public announcement of such Demand Record Date. In addition, the
Company By-laws provide that if no Demand Record Date has been fixed by the
Company Board within 10 days after the date on which such request is received
by the Company's Secretary, the Demand Record Date shall be the 10th day after
the first date on which a valid written request to set a Demand Record Date is
received by the Company's Secretary. On April 28, 1997 the Purchaser (as the
record holder of 1,000 Shares) delivered to the Company a request that the
Company set a Demand Record Date, and on May 8, 1997, the Company announced
that the Company Board had fixed May 16, 1997 as the Demand Record Date. Once
Parent has received Written Demands from the Requisite Holders (all of whom
must be holders on the Demand Record Date) and timely delivers such Written
Demands to the Company, the Company is required under the Company By-laws and
the WBCL to call and hold the Special Meeting within specified time periods
described below.
The foregoing notwithstanding, pursuant to the Company By-laws, the Company
is not required to call the Special Meeting upon the demand of the Requisite
Holders unless the Soliciting Shareholders (as defined below), jointly and
severally, agree to pay the Company's costs of holding the Special Meeting,
including the costs of preparing and mailing proxy materials for the Company's
own solicitation (the "Company Costs"), provided that if each of the
resolutions introduced by any Soliciting Shareholder at such meeting is
adopted, and each of the individuals nominated by or on behalf of any
Soliciting Shareholder for election as a director at such meeting is elected,
then the Soliciting Shareholders shall not be required to pay such costs.
Under the Company By-laws, a "Soliciting Shareholder" is any shareholder
signing a Written Demand delivered to the Company, if the total number of such
shareholders is 10 or fewer, or, if the total number of shareholders signing
Written Demands delivered to the Company is more than 10, each person who
either (1) was a participant (as defined in Rule14a-11 promulgated under the
Exchange Act) in any solicitation of such Written Demands or (2) at the time
of
4
the delivery to the Company of the Written Demands had engaged or intended to
engage in any solicitation of proxies for use at the Special Meeting. The
Company By-laws also provide that certain affiliates of Soliciting
Shareholders may, upon the reasonable and good faith determination of the
Company Board, be deemed to be Soliciting Shareholders. By signing a Written
Demand, a shareholder is agreeing that if it is or becomes a Soliciting
Shareholder with respect to the demand of the Special Meeting, it will,
jointly and severally with any other Soliciting Shareholder, pay the Company
Costs, as provided in the Company By-laws. However, Parent has agreed to pay
any Company Costs required to be paid by itself and any other Soliciting
Shareholder pursuant to the relevant provision of the Company By-laws and has
agreed to reimburse in full the other Soliciting Shareholders for any
reasonable expenses incurred by such parties in connection therewith.
Special Meeting Record Date. Under the Company By-laws, the Company Board
may fix a record date for the purpose of determining the holders of Shares who
are entitled to notice of and to vote at the Special Meeting (the "Special
Meeting Record Date"), which shall not be a date later than the 30th day after
the Delivery Date (as defined below), and, if the Company Board fails to fix
the Special Meeting Record Date within 30 days after the Delivery Date, then
the close of business on such 30th day will be the Special Meeting Record
Date. The Company By-laws define the "Delivery Date" to be the date valid
Written Demands from the Requisite Holders who are record holders as of the
Demand Record Date are delivered to the Company. In accordance with the
Company By-laws and the WBCL, shareholders of the Company will be given notice
of the Special Meeting Record Date after it has been set.
Date, Time, and Place of Special Meeting. Under the Company By-laws, the
Company Board may fix the date and time of the Special Meeting; provided such
date may not be more than 70 days after the Special Meeting Record Date; and
provided further that in the event the Company Board fails to fix a meeting
date within 10 days after the Delivery Date, the Special Meeting is to be held
at 2:00 p.m. local time on the 100th day after the Delivery Date (unless such
day is not a business day, in which case the meeting is to be held on the
first preceding business day). Under the Company By-laws, the Company Board or
the Chairman of the Board, the President or the Secretary of the Company may
designate the place of the Special Meeting. Shareholders of the Company are
required to be given notice of the time and place of the Special Meeting in
accordance with the Company By-laws.
WRITTEN DEMAND PROCEDURES
Only holders of record as of the close of business on the Demand Record Date
will be entitled to execute Written Demands for a Special Meeting. If you are
a shareholder of record on the Demand Record Date, you will retain your demand
rights even if you sell your Shares after the Demand Record Date or if you
tender your Shares pursuant to the Offer, whether before or after the Demand
Record Date. The tender of Shares pursuant to the Offer does not constitute
the grant to Parent or the Purchaser of a Written Demand or any voting rights
or rights to execute a Written Demand with respect to the tendered Shares
until such time as such Shares are accepted for payment by the Purchaser.
ACCORDINGLY, IT IS IMPORTANT THAT YOU COMPLETE, SIGN, DATE AND RETURN THE
WHITE WRITTEN DEMAND CARD, EVEN IF YOU SELL SUCH SHARES AFTER THE DEMAND
RECORD DATE OR TENDER SUCH SHARES PURSUANT TO THE OFFER.
IF ANY OF YOUR SHARES ARE HELD IN THE NAME OF A BROKERAGE FIRM, BANK, BANK
NOMINEE OR OTHER NOMINEE, ONLY IT CAN EXECUTE A WRITTEN DEMAND FOR SUCH SHARES
AND WILL DO SO ONLY UPON RECEIPT OF YOUR SPECIFIC INSTRUCTIONS. ACCORDINGLY,
PLEASE CONTACT THE PERSON RESPONSIBLE FOR YOUR ACCOUNT AND INSTRUCT THAT
PERSON TO EXECUTE THE WHITE WRITTEN DEMAND CARD.
You may revoke your Written Demand at any time prior to the Delivery Date by
executing and delivering a later dated WHITE Written Demand card or other
written revocation clearly stating that your Written Demand is no longer
effective to the Secretary of the Company at Xxxxxxxx & Xxxxx, Inc., 000 Xxxx
Xxxxxx, Xxxx xx Xxx, Xxxxxxxxx 00000. Parent and the Purchaser request that
you send a copy of any revocation sent to the Company to Harnischfeger
Industries, Inc., 0000 Xxxxx Xxxx Xxxxx, Xx. Xxxxxxx, Xxxxxxxxx 00000, c/o X.
Xxxx Xxxxxxxx, Executive Vice President for Law and Government Affairs,
Secretary and General Counsel. Execution of a proxy in connection with the
Special Meeting will not revoke your Written Demand.
5
SPECIAL MEETING PROPOSALS; REQUIRED VOTE
At the Special Meeting, Parent and the Purchaser intend to present the
following resolutions for adoption by the Company's shareholders, in the order
set forth below.
(1) REMOVAL OF ALL CURRENT DIRECTORS. The text of the first resolution
proposed by Xxxxxx and the Purchaser for adoption at the Special Meeting by
the Company's shareholders reads as follows:
"RESOLVED, that all of the directors of the Company, including Xxxxxx X.
Xxxxx, Xxx X. Xxxxxx, Xxxx X. Xxxxxx, Xxxx X. Xxxxxx, Xx., Xxxx X. Xxxxx,
and Xxxxxxxx X. Xxxxxx, III, and any other person who is a director of the
Company at the time this resolution takes effect, be, and all of them
hereby are, removed from such office, effective immediately."
According to the Company's Restated Articles of Incorporation, as heretofore
amended (the "Company Charter"), approval of this resolution requires the
affirmative vote of holders of at least 66 2/3% of the voting power of the
then outstanding shares of all classes of capital stock of the Company
generally possessing voting rights in the election of directors, voting
together as a single class.
(2) REPEAL OF LATER-ADOPTED BY-LAWS. The text of the second resolution
proposed by Xxxxxx and the Purchaser for adoption at the Special Meeting by
the Company's shareholders reads as follows:
"RESOLVED, that each and every provision of the By-laws of the Company and
each and every amendment thereto (other than the amendment proposed by the
proponent of this resolution at the meeting of the Company's shareholders
at which this resolution is adopted) adopted subsequent to March 28, 1997,
or adopted on or prior to that date but not filed by the Company as an
exhibit to any Current Report on Form 8-K, Quarterly Report on Form 10-Q or
Annual Report on Form 10-K of the Company on or prior to March 28, 1997,
be, and each of them hereby is, repealed and of no effect."
According to the Company By-laws, this resolution will be approved if the
number of votes cast in favor of the resolution exceeds the number of votes
cast in opposition to the resolution; provided that, pursuant to the Company
Charter, to the extent this amendment affects Section 3.01 of the Company By-
laws (relating to the powers, number and tenure of directors) or Article IX of
the Company By-laws (relating to the indemnification of officers and
directors), the affirmative vote of holders of at least 66 2/3% of the voting
power of the then outstanding shares of all classes of capital stock of the
Company generally possessing voting rights in the election of directors,
voting together as a single class, shall be required. March 28, 1997 is the
filing date of the Company 10-K with the Commission.
(3) REDUCTION IN THE NUMBER OF DIRECTORS. The text of the third resolution
proposed by Xxxxxx and the Purchaser for adoption at the Special Meeting by
the Company's shareholders reads as follows:
"RESOLVED, that the By-laws of the Company be amended, effective
immediately, to delete the first sentence of paragraph (b) of Section 3.01
of Article III thereof in its entirety and to replace such sentence with
the following language:
"(b) The number of directors of the Corporation shall be three (3),
divided into three (3) classes of one (1), one (1) and one (1)
director, respectively."
According to the Company Charter, approval of this resolution requires the
affirmative vote of holders of at least 66 2/3% of the voting power of the
then outstanding shares of all classes of capital stock of the Company
generally possessing voting rights in the election of directors, voting
together as a single class.
(4) ELECTION OF PARENT NOMINEES. Parent and the Purchaser intend to propose
at the Special Meeting that, following the removal of all incumbent directors
of the Company from office and the reduction of the size of the Company Board
to three, the shareholders of the Company elect the three Parent Nominees
named below as
6
directors of the Company to fill the vacancies created by the removal of such
incumbent directors and such reduction in the size of the Company Board. The
text of the fourth resolution proposed by Xxxxxx and the Purchaser for
adoption at the Special Meeting by the Company's shareholders reads as
follows:
"RESOLVED, that the shareholders of the Company hereby elect Xxxxxxx X.
Xxxxx, Xxxx X. Xxxxxx, and Xxxxxxx X. Xxxxx, Xx. as directors of the
Company, effective immediately, to hold office until the annual meeting of
shareholders in 1998, 1999 and 2000, respectively, and until their
respective successors are elected and qualified."
According to the WBCL and the Company By-laws, each Parent Nominee to be
elected will be elected by a plurality of the votes cast by the Shares
entitled to vote at the Special Meeting (assuming a quorum is present).
Parent's and the Purchaser's primary purpose in seeking to elect the Parent
Nominees to the Company Board is to obtain the redemption of the Rights (or
the amendment of the Rights Agreement to make the Rights inapplicable to the
Offer and the Proposed Merger) and the approval of the Offer and the Proposed
Merger under Section 180.1141, thereby facilitating the consummation of the
Offer and the Proposed Merger. However, if elected the Parent Nominees would
be responsible for managing the business and affairs of the Company. Each
director has an obligation under applicable law to discharge his duties as a
director on an informed basis, in good faith, with the care an ordinarily
careful and prudent person in a like position would exercise under similar
circumstances and in a manner the director honestly believes to be in the best
interests of the Company. Accordingly, circumstances may arise in which the
interests of Parent, the Purchaser, and their affiliates, on the one hand, and
the interests of other shareholders of the Company, on the other hand, may
differ. In any such case, the Parent Nominees intend to discharge fully their
obligations under applicable law. The Parent Nominees, if elected, do not
intend to solicit any third party proposals for the acquisition of the
Company. If any such proposal is received, the Parent Nominees intend to
discharge fully their obligations under applicable law; however, the Parent
Nominees currently have no plan as to the steps they would take in considering
any such third party proposal.
THE PARENT NOMINEES ARE COMMITTED, SUBJECT TO THEIR FIDUCIARY DUTIES, TO
GIVING YOU, AS THE OWNERS OF THE COMPANY, THE OPPORTUNITY TO ACCEPT THE
PURCHASER'S PENDING OFFER AND TO RECEIVE $19 PER SHARE IN CASH FOR YOUR SHARES
PURSUANT TO THE OFFER.
7
The Parent Nominees have furnished the following information concerning
their principal occupations or employment and certain other matters. Xxxxxxx
X. Xxxxx, Xxxx X. Xxxxxx, and Xxxxxxx X. Xxxxx, Xx., if elected, would hold
office until the Company's Annual Meeting of Shareholders in 1998, 1999 and
2000, respectively, and until a successor has been elected and qualified.
NAME, AGE AND PRINCIPAL OCCUPATION AND
DATE OF ELECTION TO BUSINESS EXPERIENCE
PRESENT POSITIONS DURING LAST FIVE YEARS
------------------- ------------------------
Xxxxxxx X. Grade..................... Chairman and Chief Executive Officer
Director of Parent since: 1983 of Parent since 1993. Chairman of the
Director of the Purchaser since: Board and President of the Purchaser
April 1997 since April 1997. President and Chief
Age 53. Executive Officer of Parent from 1992
to 1993. President and Chief
Operating Officer of Parent from 1986
to 1992. Director, Case Corporation
and Coeur D'Xxxxx Xxxxx Corporation.
Xxxx X. Xxxxxx....................... President and Chief Operating Officer
Director of Parent since: 1996 of Parent since 1996. Vice President
Director of the Purchaser since: and Secretary of the Purchaser since
April 1997 April 1997. Executive Vice President
Age 55. and Chief Operating Officer of Parent
from 1995 to 1996. President and
Chief Executive Officer of Joy
Technologies Inc. from 1994 to 1995.
President, Chief Operating Officer
and Director of Joy Technologies Inc.
from 1990 to 1995. Director, Xxxxxxxx
Corporation.
Xxxxxxx X. Xxxxx, Xx................. Executive Vice President for Finance
Director of Parent since: 1996 and Administration and Chief
Director of the Purchaser since: Financial Officer of Parent since
April 1997 1995. Vice President and Treasurer of
Age 53. the Purchaser since April 1997.
Senior Vice President, Finance and
Chief Financial Officer of Parent
from 1986 to 1995.
The business address of each Parent Nominee is 0000 Xxxxx Xxxx Xxxxx, Xx.
Xxxxxxx, Xxxxxxxxx 00000. Each of the Parent Nominees is a citizen of the
United States.
Each of the Parent Nominees has consented to serve as a director of the
Company, if elected. Parent and the Purchaser do not expect that any of the
Parent Nominees will be unable to stand for election if the Special Meeting is
held, but, in the event that any vacancy in the Parent Nominees should occur,
Parent will name a substitute nominee. In addition, Parent reserves the right
(i) to nominate additional nominees to fill any director positions created by
the Company Board prior to or at the Special Meeting, and (ii) to nominate or
substitute additional persons if the Company makes or announces any changes to
the Company By-laws or takes or announces any other action that has, or if
consummated would have, the effect of disqualifying any or all of the Parent
Nominees.
According to the Company's publicly filed documents, non-employee directors
of the Company generally are eligible to receive an annual fee and an
additional fee for each meeting of the Company Board attended, along with
certain stock incentive benefits, in accordance with the policies of the
Company; however, each Parent Nominee has indicated that he intends to forego
such fees and stock incentive benefits, if elected. In addition, each of the
Parent Nominees is and is expected to continue to be an employee of Parent,
and, as such, will continue to receive his normal compensation in connection
with such employment. The Parent Nominees, if elected, will be indemnified by
the Company for service as a director of the Company to the extent
indemnification is provided to the directors of the Company under the Company
Charter, the Company By-laws,
8
the WBCL and any other customary practices and policies. In addition, Xxxxxx
has agreed to indemnify the Parent Nominees against certain claims, damages
and expenses arising from their standing for election at the Special Meeting.
Schedule II sets forth certain additional information concerning the Parent
Nominees as well as certain information regarding ownership of Shares by
Parent, the Purchaser and the Parent Nominees.
IF THE SPECIAL MEETING IS NOT CALLED, OR IF EACH OF THE SPECIAL MEETING
PROPOSALS IS NOT APPROVED BY THE COMPANY'S SHAREHOLDERS, AND AS A RESULT
CERTAIN CONDITIONS TO THE OFFER ARE NOT SATISFIED, PARENT AND THE PURCHASER
MAY EITHER (I) TERMINATE THE OFFER OR (II) CONTINUE TO PURSUE THE OFFER AND
THE SATISFACTION OF THE CONDITIONS TO THE OFFER THROUGH NEGOTIATION,
LITIGATION AND OTHER MEANS.
VOTING AT THE SPECIAL MEETING
The Company Charter provides that holders of Shares are entitled to one vote
for each Share held by them on all matters brought before the Company's
shareholders for a vote, including each of the Special Meeting Proposals.
SOLICITATION OF WRITTEN DEMANDS
Written Demands may be solicited by mail, telephone, telecopier or the
Internet and in person. Solicitations may be made by directors, officers,
investor relations personnel and other employees of Parent or the Purchaser,
none of whom will receive additional compensation for such solicitations.
Parent has requested banks, brokerage houses and other custodians, nominees
and fiduciaries to forward all of its solicitation materials to the beneficial
owners of the Shares they hold of record. Parent will reimburse these record
holders for customary clerical and mailing expenses incurred by them in
forwarding these materials to their customers.
Parent has retained Xxxxxxxxx and Xxxxxx-Xxxxx for solicitation and advisory
services in connection with (i) this solicitation and (ii) the solicitation of
proxies in connection with the votes to be taken at the Special Meeting, if
called. Parent has also retained Xxxxxxxxx and Xxxxxx-Xxxxx to act as
Information Agents in connection with the Offer. Parent will pay usual and
customary compensation for all such services, including fees aggregating up to
$275,000 (portions of which are contingent upon the occurrence of certain
events), and will reimburse each of the Information Agents for reasonable out-
of-pocket expenses in connection therewith. Parent has agreed to indemnify
each of the Information Agents against certain liabilities and expenses in
connection with the Offer, including, without limitation, certain liabilities
under the federal securities laws. Xxxxxxxxx and Xxxxxx-Xxxxx will solicit
Written Demands and proxies from individuals, brokers, bank nominees and other
institutional holders. It is anticipated that Xxxxxxxxx and Xxxxxx-Xxxxx will
employ approximately 50 and 42 employees, respectively, to solicit Written
Demands and proxies in connection with the calling of and voting at the
Special Meeting.
Xxxxxx Brothers Inc. ("Xxxxxx Brothers") is acting as Dealer Manager in
connection with the Offer and as Xxxxxx's financial advisor with respect to
the Offer and the Proposed Merger. As compensation for such services, Parent
has agreed to pay or cause to be paid to Xxxxxx Brothers (i) if Parent or any
of its affiliates acquires substantially all of the assets of the Company or
becomes a party to any merger or consolidation with the Company, $3.5 million,
or (ii) if a transaction is not consummated, a fee equal to 7% of Parent's
profits from the sale of its Shares or of any termination fee received. The
first $250,000 of the fee payable under (i) above was payable within ten days
of commencement of the Offer, regardless of whether the full amount of such
fee ever becomes payable. Xxxxxx has also agreed to reimburse Xxxxxx Brothers
for certain reasonable expenses incurred in connection with Xxxxxx Brothers'
engagement, and has also agreed to indemnify Xxxxxx Brothers (and certain
affiliated persons) against certain liabilities and expenses, which would
include, without limitation, certain liabilities under the federal securities
laws.
9
Xxxxxx Brothers has advised Xxxxxx and the Purchaser that it does not admit
that it or any of its directors, officers or employees is a "participant" as
defined in Schedule 14A promulgated under the Exchange Act in the solicitation
of Written Demands or proxies, or that Schedule 14A requires the disclosure of
certain information concerning Xxxxxx Brothers. In connection with Xxxxxx
Brothers' role as financial advisor to Parent, Xxxxxx Brothers and the
following investment banking employees of Xxxxxx Brothers may, for the purpose
of assisting in the solicitation of Written Demands to call the Special
Meeting and proxies for the Special Meeting, communicate in person, by
telephone or otherwise with a limited number of institutions, brokers or other
persons who are shareholders of the Company: X. Xxxxxx, X. Xxxx, X. Xxxxxx and
X. Xxxxx. Xxxxxx Brothers will not receive any fee for or in connection with
such solicitation activities apart from the fees which it is otherwise
entitled to receive as described above. In the normal course of its business,
Xxxxxx Brothers is a market maker with respect to the Shares and regularly
buys and sells Shares for its own account and for the accounts of its
customers, which transactions may result in Xxxxxx Brothers and its associates
having at any time a net "long" or net "short" position in Shares or option
contracts with other derivatives in or relating to the Shares. As of April 18,
1997, Xxxxxx Brothers had a net "long" position of 397 Shares.
The entire expense of soliciting Written Demands and proxies for the Special
Meeting is being borne by Parent. Parent does not currently intend to seek
reimbursement for such expenses from the Company. Costs incidental to such
Written Demands and proxies include expenditures for printing, postage, legal
and related expenses and are expected to be approximately $1.1 million. Total
costs incurred to date in furtherance of or in connection with such Written
Demands and proxies are approximately $25,000. In addition, Parent has agreed
to pay any Company Costs required to be paid by itself and any other
Soliciting Shareholder pursuant to Section 2.03 of the Company By-laws and has
agreed to reimburse in full the other Soliciting Shareholders for any
reasonable expenses incurred by such parties in connection therewith. Parent
is unable to estimate the amount of such Company Costs. See "Solicitation of
Written Demands; Calling of Special Meeting".
SHAREHOLDER PROPOSALS
According to the Company Annual Meeting Proxy Statement, proposals which
shareholders of the Company intend to present at and have included in the
Company's proxy statement for the Company's 1998 annual meeting must be
received by the Company by the close of business on November 21, 1997. In
addition, the proxy statement states that a shareholder who otherwise intends
to present business at the 1998 annual meeting (including nominating persons
for election as directors) must comply with the requirements set forth in the
Company By-laws. The proxy statement states that, among other things, to bring
business before an annual meeting, a shareholder must give written notice
thereof to the Secretary of the Company in advance of the meeting in
compliance with the terms and within the time periods specified in the Company
By-laws.
10
OTHER INFORMATION
Parent and the Purchaser. Parent, whose principal offices are located in St.
Xxxxxxx, Wisconsin, is a Delaware corporation and a holding company for
subsidiaries involved in the worldwide manufacture and distribution of surface
mining equipment; underground mining equipment; pulp and papermaking
machinery; and material handling equipment. In early fiscal 1996, Parent
completed the acquisition of Xxxxxx Park Industries plc ("Xxxxxx"), an
industrial engineering group with interests in underground mining equipment,
industrial electronic control systems, toys and plastics. Xxxxxx'x principal
subsidiary, Longwall International, is engaged in the manufacture, sale and
service of mining equipment for the international underground coal mining
industry and has been integrated into the Parent's Mining Equipment Segment.
In March 1996, Parent completed the purchase of the assets of the pulp
machinery division of Xxxxxxxxx-Xxxx Company.
Parent is the direct successor to a business begun over 100 years ago in
Wisconsin which, through its subsidiaries, manufactures and markets products
classified into three industry segments: Mining Equipment, Pulp and
Papermaking Machinery, and Material Handling.
The Purchaser is a newly incorporated Delaware corporation and a wholly
owned subsidiary of Parent which to date has not conducted any business other
than in connection with the Offer and the Proposed Merger. The principal
executive offices of Parent and the Purchaser are located at 0000 Xxxxx Xxxx
Xxxxx, Xx. Xxxxxxx, Xxxxxxxxx 00000. Parent owns all of the outstanding shares
of the Purchaser.
From time to time, in the ordinary course of business, Parent makes
purchases from and sales to the Company of certain products, which
transactions are on terms and conditions customary for the industry and
negotiated at arm's length. Neither purchases by Parent from the Company nor
sales by Parent to the Company have exceeded $5 million in the aggregate in
any of Parent's or the Company's past three fiscal years.
Directors and Executive Officers. Certain information about the directors
and executive officers of Parent and the Purchaser who may also assist
Xxxxxxxxx and Xxxxxx-Xxxxx in soliciting proxies and Written Demands is set
forth in the attached Schedule I.
Other Information. Schedule II sets forth certain information relating to
Shares owned by Parent and the Purchaser. Schedule III sets forth certain
information, as made available in public documents, regarding Shares held by
the Company's principal shareholders and its management.
THIS SOLICITATION STATEMENT IS NEITHER A REQUEST FOR THE TENDER OF SHARES
NOR AN OFFER WITH RESPECT THERETO. THE PURCHASER'S PENDING OFFER IS BEING MADE
ONLY BY MEANS OF THE OFFER TO PURCHASE AND THE RELATED LETTER OF TRANSMITTAL.
FOR ADDITIONAL COPIES OF THE OFFER TO PURCHASE AND THE LETTER OF TRANSMITTAL,
CALL THE INFORMATION AGENTS FOR THE OFFER AT ONE OF THE FOLLOWING NUMBERS:
BANKS AND BROKERS CALL (000) 000-0000, ALL OTHERS CALL TOLL-FREE (800) 554-
7733.
PLEASE INDICATE YOUR SUPPORT OF THE PURCHASER'S PENDING OFFER BY COMPLETING,
SIGNING AND DATING THE ENCLOSED WHITE WRITTEN DEMAND CARD AND RETURNING IT
PROMPTLY TO THE INFORMATION AGENTS IN THE ENCLOSED ENVELOPE. NO POSTAGE IS
NECESSARY IF THE ENVELOPE IS MAILED IN THE UNITED STATES.
YOUR SUPPORT IS IMPORTANT! PLEASE COMPLETE, SIGN, DATE AND MAIL THE
ACCOMPANYING WHITE WRITTEN DEMAND CARD PROMPTLY.
HARNISCHFEGER INDUSTRIES, INC.
DSFA CORPORATION
May 15, 1997
11
SCHEDULE I
DIRECTORS AND EXECUTIVE OFFICERS OF PARENT AND THE PURCHASER
DIRECTORS AND EXECUTIVE OFFICERS OF PARENT. The following table sets forth
the name, business or residence address, principal occupation or employment at
the present time and during the last five years, and the name and principal
business of any corporation or other organization in which such employment is
conducted or was conducted of each director and executive officer of Parent.
Except as otherwise noted, each of the Parent's directors and executive
officers is a citizen of the United States. The business address of each
executive officer of Parent is 0000 Xxxxx Xxxx Xxxxx, Xx. Xxxxxxx, Xxxxxxxxx
00000. Each occupation set forth opposite a person's name, unless otherwise
indicated, refers to employment with Parent. Directors are indicated by an
asterisk.
PRINCIPAL OCCUPATION OR
NAME, BUSINESS OR EMPLOYMENT AND MATERIAL
RESIDENCE ADDRESS, AGE OCCUPATIONS FOR PAST FIVE YEARS
---------------------- -------------------------------
* Xxxxx X. Xxxxxxxx........................ Principal of Xxxxxx International, an
The Xxxxxxx Center international business development
00 Xxxxxxxxx Xxxxxx consulting firm based in Columbus, Ohio,
Columbus, Ohio 43215 since 1994. President and Chief Executive
Director since: 1992- Officer of Quest International, a non-profit
Age 48. educational organization based in Granville,
Ohio, from 1989 to 1994. Director, Park
National Bank.
* Xxxxx X. Xxxxx........................... President of FMC Corporation, a world leader
FMC Corporation in production of chemicals and machinery for
000 X. Xxxxxxxx Xxxxx xxxxxxxx, xxxxxxxxxx xxx xxxxxxxxxxx, xxxxx
Xxxxxxx, Xxxxxxxx 00000 1993. Director of FMC Corporation since
Director since: 1995 1989. Chairman of United Defense L.P.
Age 54. Director, National Merit Scholarship
Foundation and National Association of
Manufacturers.
* Xxxxxxx X. Xxxxx, Xx..................... Executive Vice President for Finance and
Director since: 1996 Administration and Chief Financial Officer
Age 53. since 1995. Senior Vice President, Finance
and Chief Financial Officer from 1986 to
1995.
* Xxxx X. Xxxxxxxx......................... President, Chief Executive Officer and
Nucor Corporation Director of Nucor Corporation, a major steel
0000 Xxxxxxx Xxxx xxxxxxxx xxxxxxxxxxxxx xx Xxxxxxxxx, Xxxxx
Xxxxxxxxx, Xxxxx Xxxxxxxx 00000 Xxxxxxxx, since 1996. President, Chief
Director since: 1994 Operating Officer and Director of Nucor,
Age 49. from 1991 to 1995. Director, CEM
Corporation, Navistar International
Corporation and North Carolina Board of
Wachovia Bank.
* Xxxxx X. Xxxxx........................... Professor of Creative Management at the
000 Xxxxxxx Xxxxxx University of Chicago since 1994. Professor
Flossmoor, Illinois 60422 of Marketing from 1963 to 1994. Deputy Xxxx
Director since: 1987 of the Graduate School of Business at the
Age 59. University of Chicago from 1983 to 1993.
Director, Golden Rule Insurance Company.
I-1
PRINCIPAL OCCUPATION OR
NAME, BUSINESS OR EMPLOYMENT AND MATERIAL
RESIDENCE ADDRESS, AGE OCCUPATIONS FOR PAST FIVE YEARS
---------------------- -------------------------------
* Xxxxxx X. Xxxxxxx........................ Chairman and Chief Executive Officer of
Xxxxxxx Partners Antrim Group Inc., a Michigan-based
000 Xxxxxxxx Xxxxxx xxxxxxxxxx xxxxxxxxxxx, xxxxx Xxxxxxxx,
Xxxxxxxx, Xxxxxxxx 00000 1996. Director and former President and
Director since: 1994 Chief Executive Officer of Ford New Holland,
Age 59. now New Holland n.v., a London-based
agricultural and industrial equipment
manufacturer. Director, Libralter Engineered
Systems, Rubbermaid, Inc. and Standard Motor
Products, Inc.
* Xxxxxxx X. Grade......................... Chairman and Chief Executive Officer since
Director since: 1983 1993. President and Chief Executive Officer
Age 53. from 1992 to 1993. President and Chief
Operating Officer from 1986 to 1992.
Director, Case Corporation and Coeur D'Xxxxx
Xxxxx Corporation.
* Xxxx X. Xxxxxx........................... President and Chief Operating Officer since
Director since: 1996 1996. Executive Vice President and Chief
Age 55. Operating Officer from 1995 to 1996.
President and Chief Executive Officer of Joy
Technologies Inc. from 1994 to 1995.
President, Chief Operating Officer and
Director of Joy Technologies Inc. from 1990
to 1995. Director, Xxxxxxxx Corporation.
* Xxxxxx X. Xxxxxxx........................ Senior Vice President and Chief Financial
Monsanto Company Officer of Monsanto Company, a diversified
000 Xxxxx Xxxxxxxxx Xxxx. company in chemicals, pharmaceuticals, food
St. Louis, Missouri 63167 products and agricultural chemicals, since
Director since: 1994 1994. Vice President-International of FMC
Age 60. Corporation, a manufacturer of machinery and
chemical products, from 1990 to 1994.
Director, Xxxxxx Group of Municipal Funds
and Boatmen's Trust Company.
* Xxxxx X. Xxxxxx.......................... Retired Vice Chairman, President and Chief
3 Xxxx Xxxxxxxxxxx Xxxxx Operating Officer of USG Corporation,
Richmond, Virginia 23226 international manufacturer of building
Director since: 1988 materials and construction systems.
Age 68.
* Xxxx-Xxxxxx Xxxxxxxxx.................... Chairman and Chief Executive of Xxxxxxxxx,
Societe Financiere Xxxxxx, a financial holding company based in
Xxxxxxxxx, Xxxxxx France with global interests in many
00 Xxxxxx Xxxxxxx-Xxxxxxx business areas including oil and gas
71003 Macon France importation and distribution and food
Director since: 1994 distribution, since 1972. Director, Promodes
Citizenship: French X.X. Xxxxxx Xxxxxx Bank--Banque de France
Age 59. Adviser.
I-2
PRINCIPAL OCCUPATION OR
NAME, BUSINESS OR EMPLOYMENT AND MATERIAL
RESIDENCE ADDRESS, AGE OCCUPATIONS FOR PAST FIVE YEARS
---------------------- -------------------------------
* X. Xxxxxx XxXxxxx........................ Retired President and Chief Operating
Engelhard Corporation Officer, Engelhard Corporation, a world-
000 Xxxx Xxxxxx xxxxxxx xxxxxxxx xx xxxxxxxxxxxxx
Xxxxxx, Xxx Xxxxxx 00000 technologies, specialty chemical products,
Director since: 1997 engineered materials and services, since
Age 59. January 31, 1997. President and Chief
Operating Officer from 1995 to 1997. Senior
Vice President and Chief Operating Officer
from 1990 to 1995. Director, Engelhard
Corporation and N.E. Chemcat Corp.
X. Xxxx Xxxxxxxx........................... Executive Vice President for Law and
Age 49. Government Affairs, Secretary and General
Counsel since December 1994; Senior Vice
President, General Counsel and Secretary
from 1991 to December 1994. Prior to joining
Parent in September 1991, Xx. Xxxxxxxx was a
partner with the law firm of Xxxxxxx, Best &
Friedrich.
* Xxxxxxx X. Xxxxx......................... President and Chief Executive Officer,
Xxxxxxx Kodak Company Qualex, Inc., a wholesale photoprocessor
000 Xxxxx Xxxxxx company headquartered in Durham, North
Rochester, New York 14650 Carolina. Vice President of Xxxxxxx Kodak
Director since: 1997 Company, a company engaged worldwide in
Age 45. developing, manufacturing and marketing
consumer and commercial imaging products,
and President, Customer Equipment Services
Division of Xxxxxxx Kodak, since 1995.
General Manager and Vice President of
Government and Education Markets from 1994
to 1995. General Manager and Vice President
of Markets Development, U.S. and Canada from
1991 to 1994.
* Xxxxxx Xxxxxx............................ Principal in Xxxxxxxx Associates, specialists
Xxxxxxxx Associates in board of director searches, since 1992.
0000 Xxxxx Xxxxxxxx Xxxx, Xxxxx 000 Xxxxxxxx Xxxxxxxx-XXX, ANATAR Investments
Milwaukee, Wisconsin 53217 Limited, a venture capital specialist, from
Director since: 1979 1990 to 1992. Director, Xxxxx Corporation,
Age 69. Xxxxxxx Controls, Inc., Superior Services,
Inc. and The Enhancers, Inc.
DIRECTORS AND EXECUTIVE OFFICERS OF THE PURCHASER. The directors of the
Purchaser are Xxxxxxx X. Xxxxx, Xxxx X. Xxxxxx and Xxxxxxx X. Xxxxx, Xx. Mr.
Xxxxx is the Chairman of the Board and President of the Purchaser, Xx. Xxxxxx
is Vice President and Secretary, and Xx. Xxxxx is Vice President and
Treasurer. Each director and officer was appointed or elected in April 1997.
Each of such persons is an officer and director of Parent. Additional
information regarding the directors and officers of the Purchaser is set forth
above.
I-3
SCHEDULE II
SHARES HELD BY PARENT AND THE PURCHASER
I. TRANSACTIONS IN SHARES BY PARENT AND THE PURCHASER
Parent is the beneficial owner of an aggregate of 789,600 Shares, of which
the Purchaser is the record holder and beneficial owner of 1,000 Shares. All
of such Shares were purchased for cash in open market transactions as follows:
SHARES PRICE PAID
TRANSACTION DATE PURCHASED PER SHARE*
---------------- --------- ----------
28-Feb-97............................................ 45,000 $13.8750
03-Mar-97............................................ 2,500 $13.6250
04-Mar-97............................................ 18,900 $13.6250
04-Mar-97............................................ 21,100 $13.7500
05-Mar-97............................................ 22,100 $13.7500
11-Mar-97............................................ 10,000 $14.0000
12-Mar-97............................................ 15,000 $14.0000
13-Mar-97............................................ 5,000 $14.0000
14-Mar-97............................................ 300,000 $14.1250
24-Mar-97............................................ 350,000 $14.5000
--------
* Exclusive of commissions.
On April 15, 1997, Xxxxxx contributed to the Purchaser 1,000 Shares in
exchange for 1,000 shares of Common Stock, par value $.10 per share, of the
Purchaser.
II. TRANSACTIONS IN SHARES BY DIRECTORS AND EXECUTIVE OFFICERS OF PARENT AND
THE PURCHASER AND THE PARENT NOMINEES
Except as disclosed in this Schedule II, none of Parent, the Purchaser, any
of their respective directors or executive officers or the Parent Nominees
owns any securities of the Company or of any subsidiary of the Company,
beneficially or of record, has purchased or sold any of such securities within
the past two years or was within the past year a party to any contract,
arrangement or understanding with any person with respect to any such
securities. Except as disclosed in this Schedule II, to the knowledge of
Parent, no associate of Parent, the Purchaser, any of their respective
directors or executive officers or the Parent Nominees beneficially owns,
directly or indirectly, any securities of the Company.
To the knowledge of Parent, other than disclosed in the Proxy Statement or
this Schedule II, none of Parent, the Purchaser, any of their respective
directors or executive officers or the Parent Nominees has any substantial
interest, direct or indirect, by security holdings or otherwise, in any matter
to be acted upon at the Special Meeting.
None of the Parent Nominees has, during the last ten years, been convicted
in a criminal proceeding (excluding traffic violations or similar
misdemeanors).
II-1
SCHEDULE III
PRINCIPAL SHAREHOLDERS OF THE COMPANY
AND SHAREHOLDINGS OF THE COMPANY'S MANAGEMENT
Set forth below is information regarding Shares owned by (i) directors and
executive officers of the Company and (ii) those persons owning more than 5%
of the outstanding Shares. Such information is obtained from the Company
Annual Meeting Proxy Statement.
MANAGEMENT
(AS OF MARCH 1, 1997)
The following table sets forth information, as of March 1, 1997, regarding
beneficial ownership of Shares by each director, certain named executive
officers, and all of the directors, nominees and executive officers as a
group.
AMOUNT AND NATURE OF
BENEFICIAL PERCENT OF
NAME OF BENEFICIAL OWNER OWNERSHIP(1)(2) CLASS
------------------------ -------------------- ----------
Xxxx X. Xxxxxx.............................. 4,896 *
Xxxxxx X. Xxxxxxx........................... 344,430(3) 1.0%
Xxxx X. Xxxxx............................... 2,696 *
Xxxxx X. Xxxxxx............................. 7,339(4)(5) *
Xxxxxxxx X. Xxxxxx, III..................... 4,696 *
Xxxx X. Xxxxxx, Xx.......................... 4,984 *
Xxxxxx X. Xxxxx............................. 110,000 *
Xxx X. Xxxxxx............................... 3,696 *
Xxxxx X. Xxxxxx............................. 88,000 *
Xxxxxxx X. Xxxxxxxx......................... 87,517 *
Xxxxxx X. Xxxxxx............................ 64,000 *
Xxxxxxx X. Xxxxxxxxxx....................... 125,566(6) *
All directors and executive officers
as a group (18 persons).................... 1,301,377 3.8%
--------
*Less than one percent.
(1) Includes the following Shares subject to stock options which are currently
exercisable or exercisable within 60 days of March 1, 1997: Xx. Xxxxxx,
2,000 Shares; Xx. Xxxxxxx, 291,000 Shares; Xx. Xxxxx, 1,000 Shares; Xx.
Xxxxxx, 2,000 Shares; Xx. Xxxxxx, 2,000 Shares; Xx. Xxxxxx, 1,000 Shares;
Xx. Xxxxxx, 31,000 Shares; Xx. Xxxxxxxx, 31,367 Shares; Xx. Xxxxxx, 13,000
Shares; Xx. Xxxxxxxxxx, 62,287 Shares; and all directors and executive
officers as a group, 623,334 Shares.
(2) Includes the following restricted Shares granted under either the
Company's 1989 Restricted Stock Plan or the Company's 1993 Stock and
Incentive Plan, over which the holders have sole voting but no investment
power: Xx. Xxxxxx, 1,696 Shares; Xx. Xxxxxxx, 357 Shares; Xx. Xxxxx, 1,696
Shares; Xx. Xxxxxx, 1,339 Shares; Xx. Xxxxxx, 1,696 Shares; Xx. Xxxxxx,
984 Shares; Mr. Xxxxx, 75,000 Shares; Xx. Xxxxxx, 1,696 Shares; Xx.
Xxxxxx, 51,000 Shares; Xx. Xxxxxxxx, 45,000 Shares; Xx. Xxxxxx, 51,000
Shares; Xx. Xxxxxxxxxx, 36,000 Shares; and all directors, nominees and
executive officers as a group, 498,064 Shares. The restricted Shares
reflected in the table include Shares granted to the executive officers in
February 1997.
(3) Xx. Xxxxxxx'x current term as a director is scheduled to expire in April
1997.
(4) Xx. Xxxxxx'x current term as a director is scheduled to expire in April
1997.
(5) Xx. Xxxxxx shares voting and investment power over 4,000 Shares with his
wife.
(6) Xx. Xxxxxxxxxx retired as Vice President--Finance and as a director of the
Company in December 1996.
III-1
OTHER BENEFICIAL OWNERS
The following table sets forth information, as of December 31, 1996,
regarding beneficial ownership by the only persons known to the Company as
disclosed in the Company Annual Meeting Proxy Statement to own more than 5% of
the outstanding Shares. The Annual Meeting Proxy Statement stated that the
beneficial ownership set forth below has been reported on filings made on
Schedule 13G with the Commission by the beneficial owners.
AMOUNT AND NATURE
OF BENEFICIAL OWNERSHIP
---------------------------------
VOTING POWER INVESTMENT POWER
---------------- ----------------
PERCENT
NAME AND ADDRESS OF OF
BENEFICIAL OWNER SOLE SHARED SOLE SHARED AGGREGATE CLASS
------------------- --------- ------ --------- ------ --------- -------
State of Wisconsin In-
vestment Board.......... 3,120,000 -0- 3,120,000 -0- 3,120,000 9.4%
P.O. Box 7842
Madison, Wisconsin 53707
Xxxxxxx X. Xxxxxxxxx &
Co., Inc. .............. 1,446,450 27,950 1,710,200 -0- 1,710,200 5.2%
000 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
III-2
-------------------------------------------------------------------------------
IMPORTANT
If your Shares are registered in your own name, you may mail or fax your
WHITE Written Demand (both sides) to Xxxxxxxxx & Company, Inc. or Xxxxxx-Xxxxx
Inc. at their respective addresses or fax numbers listed below.
If your Shares are held in "street name" -- held by your brokerage firm or
bank -- immediately instruct your broker or bank representative to sign
Parent's WHITE Written Demand on your behalf.
If you have any questions concerning the tender offer material you have
previously received, or need assistance tendering your Shares pursuant to the
Offer, please call Xxxxxx-Xxxxx Inc. at the numbers listed below.
IF YOU HAVE ANY QUESTIONS REGARDING YOUR PROXY, OR NEED ASSISTANCE IN VOTING
YOUR SHARES, PLEASE CALL XXXXXXXXX & COMPANY INC. AT THE NUMBERS LISTED BELOW.
[LOGO OF XXXXXXXXX & COMPANY INC.] [LOGO OF XXXXXX XXXXX INC.]
Wall Street Plaza 000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000 Xxx Xxxx, Xxx Xxxx 00000
Banks and Brokers Call Collect: Banks and Brokers Call:
(000) 000-0000 (000) 000-0000
All Others Call Toll-Free: All Others Call Toll-Free:
(000) 000-0000 (000) 000-0000
Facsimile: 212-440-9009 Facsimile: (000) 000-0000
-------------------------------------------------------------------------------
DEMAND TO CALL A SPECIAL MEETING
OF
XXXXXXXX & XXXXX, INC.
THIS DEMAND IS SOLICITED BY
HARNISCHFEGER INDUSTRIES, INC. AND DSFA CORPORATION
To the Chairman of the Board, the
President and the Secretary of
Xxxxxxxx & Xxxxx, Inc.:
The undersigned was the record holder (or is the duly authorized proxy or
other representative of one or more such record holders), as of May 16, 1997,
of the number of shares of Common Stock, $.10 par value per share (the
"Shares"), of Xxxxxxxx & Xxxxx, Inc. (the "Company") set forth below. In
accordance with Section 180.0702 of the Wisconsin Business Corporation Law and
Section 2.03 of the By-laws of the Company, the undersigned hereby demands
that the Chairman of the Board or the President of the Company call a Special
Meeting of the Company's shareholders (the "Special Meeting") as promptly as
possible, but in no event to be held later than the 100th day after the date
that valid written demands to call the Special Meeting by the holders of
record as of the Demand Record Date (as defined below) of shares representing
at least 10% of all the votes entitled to be cast on any issue proposed to be
considered at the Special Meeting are delivered to the Company. The
undersigned is aware that the Company's Board of Directors has fixed May 16,
1997 (the "Demand Record Date") as the record date to determine the
shareholders entitled to make a demand for the Special Meeting.
The purpose for which such meeting is to be held is to permit the
shareholders of the Company to consider and vote upon proposals (the
"Proposals") to:
(1) remove all of the current members of the Board of Directors of the
Company and any person or persons elected or designated prior to the
Special Meeting to fill any vacancy or newly created directorship;
(2) repeal each provision of the Company's By-laws or amendments thereto
(other than the amendment referred to in (3) below) adopted subsequent
to March 28, 1997, or adopted on or prior to that date but not filed by
the Company as an exhibit to any Current Report on Form 8-K, Quarterly
Report on Form 10-Q or Annual Report on Form 10-K of the Company on or
prior to March 28, 1997;
(3) amend Article III of the Company's By-laws to fix the number of
directors of the Company at three; and
(4) elect Xxxxxxx X. Xxxxx, Xxxx X. Xxxxxx, and Xxxxxxx X. Xxxxx, Xx.
(together, the "Nominees") as the directors of the Company, effective
immediately, to hold office until the annual meeting of shareholders in
1998, 1999 and 2000, respectively, and until their respective
successors are elected and qualified.
If Proposal (3) is approved, the number of directors of the Company shall be
three, divided into three classes of one, one and one director, respectively.
DEMAND TO CALL A SPECIAL MEETING OF SHAREHOLDERS OF XXXXXXXX & XXXXX, INC.
[_] FOR [_] AGAINST [_] ABSTAIN
XXXXXXXXXXXXX AND DSFA STRONGLY RECOMMEND THAT YOU INDICATE YOUR SUPPORT FOR
THE CALL OF THE SPECIAL MEETING.
The undersigned is aware and acknowledges that by executing this demand it
agrees that, in the event the undersigned is or becomes a Soliciting
Shareholder (within the meaning assigned to such term in Section 2.03 of the
By-laws of the Company) with respect to the demand of the Special Meeting, the
undersigned agrees, jointly and severally with any other Soliciting
Shareholder, to pay the Company's costs of holding the Special Meeting,
including the costs of preparing and mailing proxy materials for the Company's
own solicitation (the "Company Costs"), provided that if each of the
resolutions introduced by any Soliciting Shareholder at the Special Meeting is
adopted, and each of the individuals nominated by or on behalf of any
Soliciting Shareholder for election as a director at the Special Meeting is
elected, then the undersigned shall not be obligated to pay such Company
Costs. The undersigned is aware and acknowledges that Harnischfeger
Industries, Inc. has agreed to pay any Company Costs required to be paid by
itself and any other Soliciting Shareholder pursuant to the relevant provision
of the By-laws of the Company and has agreed to reimburse in full the other
Soliciting Shareholders for any reasonable expenses incurred by such parties
in connection therewith.
(over)
IF THIS WRITTEN DEMAND CARD IS EXECUTED AND RETURNED BUT NO INDICATION IS
MADE AS TO WHAT ACTION IS TO BE TAKEN, IT IS DEEMED TO CONSTITUTE A WRITTEN
DEMAND THAT XXXXXXXX & XXXXX, INC. CALL THE SPECIAL MEETING.
Dated: ________________________, 1997
Please sign exactly as name appears
on this Written Demand card:
_____________________________________
(Signature)
_____________________________________
(Signature, if jointly held)
When Shares are held by joint ten-
ants, both should sign. When signing
as an attorney, executor, adminis-
trator, trustee or guardian, give
full title as such. If a corpora-
tion, sign in full corporate name by
President or other authorized offi-
cer. If a partnership, sign in part-
nership name by authorized person.
Name and address of record holder as
it appears in the Company's books:
Name: _______________________________
Address: ____________________________
_____________________________________
_____________________________________
_____________________________________
Number of shares of Common Stock, If this card is signed by a proxy or
$.10 par value per share, owned of other representative of the record
record by the record holder of the holder whose Shares are represented
Xxxxxx represented hereby: __________ hereby, name and address of such
proxy or representative:
Number of shares of Common Stock,
$.10 par value per share, owned ben- Name: _______________________________
eficially by the record holder of
the Shares represented hereby: ______
Address: ____________________________
_____________________________________
_____________________________________
If this card is signed by a proxy or _____________________________________
other representative of the record
holder whose Shares are represented
hereby, number of shares of Common
Stock, $.10 par value per share,
votable by proxy (by such proxy or
other representative) from the rec-
ord holder and with respect to which
instruction(s) to execute Written
Demands have been received from the
beneficial owner(s) thereof: ________
PLEASE COMPLETE, SIGN, DATE AND MAIL PROMPTLY!
