o Check the box if the filing relates solely to preliminary communications made before the commencement of a tender offer. |
2
| The Revised NACCO Offer Continues to Contain Certain Significant Conditions. The Applica board noted that the revised NACCO offer continues to contain certain substantial conditions that create significant concerns as to whether the revised NACCO offer can be completed particularly in light of the fact that NACCOs tender offer price is less than 2% more than the per share merger consideration payable in the Harbinger merger. Although NACCO has eliminated or revised certain conditions precedent to make such conditions more comparable to the conditions to the Harbinger merger and had further indicated in the NACCO Response Letter a willingness to modify certain of the conditions in the context of a merger agreement between Applica and NACCO, the Applica board believes that the following conditions of the revised NACCO offer remain an unacceptable risk to consummation of such offer: |
| Minimum Condition. Applicas shareholders shall have validly tendered and not properly withdrawn prior to the expiration of the revised NACCO offer a number of shares of common stock that constitute a majority of the outstanding shares of Applicas common stock, calculated on a fully diluted basis as of the date the shares are accepted for payment pursuant to the revised NACCO offer. | ||
Applicas board believes that the Minimum Condition, which requires a majority of Applicas outstanding shares of common stock on a fully diluted basis to be tendered, presents a significant risk that the revised NACCO offer will not be consummated, especially in light of Harbingers ownership of approximately 39% of Applicas outstanding common stock. Assuming that Harbinger does not tender the shares of common stock that it currently owns, the Minimum Condition will not be satisfied unless approximately 81% to 86% percent of the remaining currently outstanding shares of Applicas common stock are tendered. The Applica board noted that data available to the Applica board indicate tender offer response rates rarely exceed the mid 90% range. More importantly, the Applica board noted that the voting response rate to the current Applica proxy solicitation appears to be less than 65% of the shares not owned by Harbinger (on a fully diluted basis); accordingly, the Applica board believes that there is a considerable risk that the Minimum Condition will not be satisfied. | |||
| No Adverse Change Condition. No event, circumstance, change or effect shall have occurred since October 19, 2006 that, individually or in the aggregate, with all other events, circumstances, changes and effects, is or could reasonably be expected to be materially adverse to the business, financial condition, assets, liabilities or results of operations of Applica and its subsidiaries, taken as a whole; provided, however, that the foregoing shall not include any event, circumstance, change or effect resulting from (A) changes in general economic conditions or (B) general changes in the industry of designing, marketing and distributing small electronic kitchen and household appliances in which Applica and its subsidiaries operate that do not have a disproportionate effect (relative to overall industry performance) on Applica and its subsidiaries, taken as a whole. | ||
The No Adverse Change Condition does not exclude effects arising out of the announcement or pendency of a potential transaction with NACCO. The Applica board believes that the announcement of a potential transaction with NACCO may result in a substantial loss of key employees and other adverse effects on Applicas business. Although it is impossible to assess whether such adverse effects will occur, such potential risks have not yet been identified as risks to consummation of the Harbinger merger. If such an adverse impact did occur after the announcement of a potential transaction with NACCO, NACCO could assert that the No Adverse Change Condition was not satisfied and, as a result, not consummate the revised NACCO offer. Applica requested that NACCO revise the No Adverse Change Condition such that adverse changes resulting from the transaction itself cannot be asserted to avoid completion of the NACCO offer. In the NACCO Response Letter, NACCO indicated a willingness to make |
3
certain changes in this condition in the context of merger agreement, but indicated that it would require a reasonable level of specificity with respect to the exclusions. Material adverse change provisions are highly negotiated contractual provisions, and it is uncertain whether Applica and NACCO would be able to reach a mutually acceptable agreement with respect to the scope of the requested exclusions. Accordingly, the Applica board believes that this condition poses a potential risk to consummation of the NACCO offer that is not present with respect to the Harbinger merger. |
| Uncertainty Harmful to Applicas Business. The uncertainty regarding the ownership of Applica has strained Applicas relationships with certain of its significant customers, adversely affected Applicas ability to operate its business in the ordinary course and has had a negative impact upon Applicas ability to attract new employees and to fill vacant employment positions. In light of the these threats to Applicas business caused by such uncertainty, the Applica board believes that it is imperative to consummate a transaction as promptly as practicable. The Applica board believes that NACCO continues to insist upon conditions that are not likely to be satisfied. In an attempt to terminate the now protracted period of uncertainly regarding the ownership of Applica, during which period the original $6.00 per share price to be offered to Applicas shareholders by Harbinger has increased to $7.75 under the Harbinger merger agreement, Applica reiterated to NACCO the Applica boards determination that the NACCO offer, as currently structured, fails to provide sufficient certainty of completion and demanded that NACCO inform the Applica board whether it is willing to amend its offer to remedy these concerns. Although the NACCO Response Letter addressed certain of the Applica boards concerns regarding closing certainty, it did not go far enough to remedy such concerns. There is significantly less uncertainty associated with the consummation of the Harbinger merger; in fact, Applica believes that, subject to receipt of shareholder approval, substantially all conditions precedent to the consummation of the Harbinger merger have been or will be satisfied. Accordingly, Applica currently anticipates that the merger with Harbinger would be completed not later than the day after the shareholder meeting assuming that the requisite shareholder approval were obtained. To avoid the increasing risk of harm to Applicas business and the attendant risks to the completion of a sale of Applica at the current favorable price level, the Applica board believes that a consummation of a transaction with Harbinger is in the best interests of Applica and its shareholders. |
1. | Delivering a written notice to the corporate secretary of Applica before such special meeting that states that he or she revokes his or her proxy; |
4
2. | Delivering a signed and later dated new proxy card before such special meeting in accordance with the instructions included with the proxy card; or | ||
3. | Attending the special meeting and voting in person. |
Exhibit | ||
No. | Document | |
(a)(1) | Letter to Applicas shareholders dated December 19, 2006 (incorporated by reference to
exhibit (a)(1) of Applicas Solicitation/Recommendation Statement on Schedule 14D-9 filed
with the SEC on December 19, 2006) |
|
(a)(2) | Press release issued by Applica on December 19, 2006 (incorporated by reference to
exhibit (a)(2) of Applicas Solicitation/Recommendation Statement on Schedule 14D-9 filed
with the SEC on December 19, 2006)* |
|
(a)(3) | Applicas Definitive Proxy Statement on Schedule 14A relating to the Special Meeting of
Shareholders to consider the Harbinger merger, as supplemented on December 15, 2006,
December 22, 2006, December 28, 2006 and January 5, 2007 (filed with the SEC on December
4, 2006, as supplemented on December 15, 2006, December 22, 2006, December 28, 2006 and
January 5, 2007, and incorporated by reference) |
|
(a)(4) | Press release issued by Applica on December 21, 2006 (incorporated by reference to
exhibit 99.1 of Applicas Current Report on Form 8-K filed with the SEC on December 21,
2006)* |
|
(a)(5) | Letter to Applicas shareholders dated December 22, 2006 (incorporated by reference to
exhibit (a)(5) of Amendment No. 2 to Applicas Solicitation/ Recommendation Statement on
Schedule 14D-9/A filed with the SEC on December 22, 2006) |
|
(a)(6) | Press release issued by Applica on December 22, 2006 (incorporated by reference to
exhibit 99.1 of Applicas Current Report on Form 8-K filed with the SEC December 22,
2006)* |
|
(a)(7) | Letter to Applicas shareholders dated December 28, 2006 (incorporated by reference to
exhibit (a)(7) of Amendment No. 3 to Applicas Solicitation/Recommendation Statement on
Schedule 14D-9/A filed with the SEC on December 28, 2006) |
|
(a)(8) | Press release issued by Applica on December 27, 2006 (incorporated by reference to
exhibit 99.1 of Applicas Current Report on Form 8-K filed December 27, 2006)* |
|
(a)(9) | Press release issued by Applica on December 28, 2006 (incorporated by reference to
Applicas Schedule 14A filed with the SEC on December 28, 2006)* |
|
(a)(10) | Press release issued by Applica on January 3, 2007 (incorporated by reference to exhibit
99.1 of Applicas Current Report on Form 8-K filed with the SEC on January 3, 2007)* |
|
(a)(11) | Letter to Applicas shareholders dated January 4, 2007 (incorporated by reference to
exhibit (a)(11) of Amendment No. 6 to Applicas Solicitation/ Recommendation Statement on
Schedule 14D-9/A filed with the SEC on January 4, 2007) |
|
(a)(12) | Press release issued by Applica on January 4, 2007 (incorporated by reference to
Applicas Schedule 14A filed with the SEC on January 4, 2007) |
|
(a)(13) | Press release issued by Applica on January 9, 2007 (incorporated by reference to exhibit
(a)(13) of Amendment No. 7 to Applicas Solicitation/ Recommendation Statement on
Schedule 14D-9/A filed with the SEC on January 10, 2007) |
5
Exhibit | ||
No. | Document | |
(a)(14) | Press release issued by Applica on January 10, 2007 (incorporated by reference to exhibit
(a)(13) of Amendment No. 7 to Applicas Solicitation/ Recommendation Statement on
Schedule 14D-9/A filed with the SEC on January 10, 2007) |
|
(a)(15) | Press release issued by Applica on January 12, 2007+ |
|
(e)(1) | Excerpts from Applicas Definitive Proxy Statement on Schedule 14A filed March 31, 2006
relating to the Applica 2006 Annual Meeting of Shareholders (incorporated by reference to
exhibit (e)(1) of Applicas Solicitation/Recommendation Statement on Schedule 14D-9 filed
with the SEC on December 19, 2006) |
|
(e)(2) | Excerpts from Applicas Definitive Proxy Statement on Schedule 14A filed relating to the
Special Meeting of Shareholders to consider Applicas proposed merger with Harbinger
Capital Partners (incorporated by reference to exhibit (e)(2) of Applicas
Solicitation/Recommendation Statement on Schedule 14D-9 filed with the SEC on December
19, 2006) |
|
(e)(3) | Employment Agreement dated May 1, 2004 between Applica and Harry D. Schulman
(incorporated by reference to Applicas Current Report on Form 8-K filed with the SEC on
October 15, 2004) |
|
(e)(4) | First Amendment to Employment Agreement dated August 2, 1999 between Applica and Harry D.
Schulman (incorporated by reference to exhibit 10.1 of Applicas Current Report on Form
8-K filed with the SEC on October 15, 2004) |
|
(e)(5) | Employment Agreement dated July 1, 2000 between Applica and Terry Polistina (incorporated
by reference to Exhibit 10.9 of Applicas Quarterly Report on Form 10-Q for the quarter
ended September 30, 2000 filed with the SEC on November 14, 2000) |
|
(e)(6) | First Amendment to Employment Agreement dated July 1, 2000 between Applica and Terry
Polistina (incorporated by reference to exhibit 10.2 of Applicas Current Report on Form
8-K filed with the SEC on April 19, 2006) |
|
(e)(7) | Employment Agreement dated September 16, 2004 between Applica and Brian Guptill
(incorporated by reference to exhibit 10.4 of Applicas Annual Report on Form 10-K filed
with the SEC on March 16, 2005) |
|
(e)(8) | First Amendment to Employment Agreement dated September 16, 2004 between Applica and
Brian Guptill (incorporated by reference to exhibit 10.1 to Applicas Current Report on
Form 8-K filed with the SEC on April 19, 2006) |
|
(e)(9) | Agreement and Plan of Merger by and between HB-PS Holding Company, Inc. and Applica
Incorporated and joined in by NACCO Industries, Inc. dated July 23, 2006 (incorporated by
reference to exhibit 2.1 of Applicas Current Report on Form 8-K filed with the SEC on July 26, 2006) |
|
(e)(10) | Agreement and Plan of Merger, dated as of October 19, 2006 by and among APN Holding
Company, Inc., APN Mergersub, Inc., and Applica Incorporated (incorporated by reference
to exhibit 2.1 of Applicas Current Report on Form 8-K filed with the SEC on October 20,
2006) |
|
(e)(11) | Amendment No. 1, dated December 14, 2006, to Agreement and Plan of Merger, dated as of
October 19, 2006 by and among APN Holding Company, Inc., APN Mergersub, Inc., and Applica
Incorporated (incorporated by reference to exhibit 2.1 of Applicas Current Report on
Form 8-K filed with the SEC on December 15, 2006) |
|
(e)(12) | Amendment No. 2, dated December 22, 2006, to Agreement and Plan of Merger, dated as of
October 19, 2006 by and among APN Holding Company, Inc., APN Mergersub, Inc., and Applica
Incorporated (incorporated by reference to exhibit 2.1 of Applicas Current Report on
Form 8-K filed with the SEC on December 22, 2006) |
|
(e)(13) | Amendment No. 3, dated December 27, 2006, to Agreement and Plan of Merger, dated as of
October 19, 2006 by and among APN Holding Company, Inc., APN Mergersub, Inc., and Applica
Incorporated (incorporated by reference to exhibit 2.1 of Applicas Current Report on
Form 8-K filed with the SEC on December 27, 2006) |
6
Exhibit | ||
No. | Document | |
(e)(14) | Excerpts from the Third Supplement to Applicas Definitive Proxy Statement on Schedule
14A filed with the SEC on December 28, 2006 (incorporated by reference to exhibit (e)(14)
of Amendment No. 3 to Applicas Solicitation/Recommendation Statement on Schedule 14D-9
filed with the SEC on December 28, 2006) |
|
(e)(15) | Amendment No. 4, dated January 3, 2007, to Agreement and Plan of Merger, dated as of
October 19, 2006 by and among APN Holding Company, Inc., APN Mergersub, Inc., and Applica
Incorporated (incorporated by reference to exhibit 2.1 of Applicas Current Report on
Form 8-K filed with the SEC on January 3, 2007) |
|
(e)(16) | Excerpts from the Fourth Supplement to Applicas Definitive Proxy Statement on Schedule
14A filed with the SEC on January 5, 2007 (incorporated by reference to exhibit (e)(16)
of Amendment No. 6 to Applicas Solicitation/ Recommendation Statement on Schedule
14D-9/A filed with the SEC on January 5, 2007)
|
|
(g) | Inapplicable |
* | This press release contains a legend that makes reference to the protections afforded by the Private Securities Litigation Reform Act of 1995. Please note that the protections afforded by the Private Securities Litigation Reform Act of 1995 do not extend to forward-looking statements made in connection with the NACCO offer. | |
+ | Filed as an exhibit hereto and included in the Amendment No. 8 to Schedule 14D-9 mailed to Applicas shareholders. |
7
APPLICA INCORPORATED |
||||
By: | /s/ Harry D. Schulman | |||
Name: | Harry D. Schulman | |||
Title: | Chairman of the Board, President and Chief Executive Officer |
8
Exhibit | ||
No. | Document | |
(a)(1) | Letter to Applicas shareholders dated December 19, 2006 (incorporated by reference to
exhibit (a)(1) of Applicas Solicitation/Recommendation Statement on Schedule 14D-9 filed
with the SEC on December 19, 2006) |
|
(a)(2) | Press release issued by Applica on December 19, 2006 (incorporated by reference to
exhibit (a)(2) of Applicas Solicitation/Recommendation Statement on Schedule 14D-9 filed
with the SEC on December 19, 2006)* |
|
(a)(3) | Applicas Definitive Proxy Statement on Schedule 14A relating to the Special Meeting of
Shareholders to consider the Harbinger merger, as supplemented on December 15, 2006,
December 22, 2006, December 28, 2006 and January 5, 2007 (filed with the SEC on December
4, 2006, as supplemented on December 15, 2006, December 22, 2006, December 28, 2006 and
January 5, 2007, and incorporated by reference) |
|
(a)(4) | Press release issued by Applica on December 21, 2006 (incorporated by reference to
exhibit 99.1 of Applicas Current Report on Form 8-K filed with the SEC on December 21,
2006)* |
|
(a)(5) | Letter to Applicas shareholders dated December 22, 2006 (incorporated by reference to
exhibit (a)(5) of Amendment No. 2 to Applicas Solicitation/ Recommendation Statement on
Schedule 14D-9/A filed with the SEC on December 22, 2006) |
|
(a)(6) | Press release issued by Applica on December 22, 2006 (incorporated by reference to
exhibit 99.1 of Applicas Current Report on Form 8-K filed with the SEC December 22,
2006)* |
|
(a)(7) | Letter to Applicas shareholders dated December 28, 2006 (incorporated by reference to
exhibit (a)(7) of Amendment No. 3 to Applicas Solicitation/Recommendation Statement on
Schedule 14D-9/A filed with the SEC on December 28, 2006) |
|
(a)(8) | Press release issued by Applica on December 27, 2006 (incorporated by reference to
exhibit 99.1 of Applicas Current Report on Form 8-K filed December 27, 2006)* |
|
(a)(9) | Press release issued by Applica on December 28, 2006 (incorporated by reference to
Applicas Schedule 14A filed with the SEC on December 28, 2006)* |
|
(a)(10) | Press release issued by Applica on January 3, 2007 (incorporated by reference to exhibit
99.1 of Applicas Current Report on Form 8-K filed with the SEC on January 3, 2007)* |
|
(a)(11) | Letter to Applicas shareholders dated January 4, 2007 (incorporated by reference to
exhibit (a)(11) of Amendment No. 6 to Applicas Solicitation/ Recommendation Statement on
Schedule 14D-9/A filed with the SEC on January 4, 2007) |
|
(a)(12) | Press release issued by Applica on January 4, 2007 (incorporated by reference to
Applicas Schedule 14A filed with the SEC on January 4, 2007) |
|
(a)(13) | Press release issued by Applica on January 9, 2007 (incorporated by reference to exhibit
(a)(13) of Amendment No. 7 to Applicas Solicitation/ Recommendation Statement on
Schedule 14D-9/A filed with the SEC on January 10, 2007) |
|
(a)(14) | Press release issued by Applica on January 10, 2007 (incorporated by reference to exhibit
(a)(14) of Amendment No. 7 to Applicas Solicitation/ Recommendation Statement on
Schedule 14D-9/A filed with the SEC on January 10, 2007) |
|
(a)(15) | Press release issued by Applica on January 12, 2007+
|
|
(e)(1) | Excerpts from Applicas Definitive Proxy Statement on Schedule 14A filed March 31, 2006
relating to the Applica 2006 Annual Meeting of Shareholders (incorporated by reference to
exhibit (e)(1) of Applicas Solicitation/Recommendation Statement on Schedule 14D-9 filed with the SEC on December 19, 2006) |
9
Exhibit | ||
No. | Document | |
(e)(2) | Excerpts from Applicas Definitive Proxy Statement on Schedule 14A filed relating to the
Special Meeting of Shareholders to consider Applicas proposed merger with Harbinger
Capital Partners (incorporated by reference to exhibit (e)(2) of Applicas
Solicitation/Recommendation Statement on Schedule 14D-9 filed with the SEC on December
19, 2006) |
|
(e)(3) | Employment Agreement dated May 1, 2004 between Applica and Harry D. Schulman
(incorporated by reference to Applicas Current Report on Form 8-K filed with the SEC on
October 15, 2004) |
|
(e)(4) | First Amendment to Employment Agreement dated August 2, 1999 between Applica and Harry D.
Schulman (incorporated by reference to exhibit 10.1 of Applicas Current Report on Form
8-K filed with the SEC on October 15, 2004) |
|
(e)(5) | Employment Agreement dated July 1, 2000 between Applica and Terry Polistina (incorporated
by reference to Exhibit 10.9 of Applicas Quarterly Report on Form 10-Q for the quarter
ended September 30, 2000 filed with the SEC on November 14, 2000) |
|
(e)(6) | First Amendment to Employment Agreement dated July 1, 2000 between Applica and Terry
Polistina (incorporated by reference to exhibit 10.2 of Applicas Current Report on Form
8-K filed with the SEC on April 19, 2006) |
|
(e)(7) | Employment Agreement dated September 16, 2004 between Applica and Brian Guptill
(incorporated by reference to exhibit 10.4 of Applicas Annual Report on Form 10-K filed
with the SEC on March 16, 2005) |
|
(e)(8) | First Amendment to Employment Agreement dated September 16, 2004 between Applica and
Brian Guptill (incorporated by reference to exhibit 10.1 to Applicas Current Report on
Form 8-K filed with the SEC on April 19, 2006) |
|
(e)(9) | Agreement and Plan of Merger by and between HB-PS Holding Company, Inc. and Applica
Incorporated and joined in by NACCO Industries, Inc. dated July 23, 2006 (incorporated by
reference to exhibit 2.1 of Applicas Current Report on Form 8-K filed with the SEC on July 26, 2006) |
|
(e)(10) | Agreement and Plan of Merger, dated as of October 19, 2006 by and among APN Holding
Company, Inc., APN Mergersub, Inc., and Applica Incorporated (incorporated by reference
to exhibit 2.1 of Applicas Current Report on Form 8-K filed with the SEC on October 20,
2006) |
|
(e)(11) | Amendment No. 1, dated December 14, 2006, to Agreement and Plan of Merger, dated as of
October 19, 2006 by and among APN Holding Company, Inc., APN Mergersub, Inc., and Applica
Incorporated (incorporated by reference to exhibit 2.1 of Applicas Current Report on
Form 8-K filed with the SEC on December 15, 2006) |
|
(e)(12) | Amendment No. 2, dated December 22, 2006, to Agreement and Plan of Merger, dated as of
October 19, 2006 by and among APN Holding Company, Inc., APN Mergersub, Inc., and Applica
Incorporated (incorporated by reference to exhibit 2.1 of Applicas Current Report on
Form 8-K filed with the SEC on December 22, 2006) |
|
(e)(13) | Amendment No. 3, dated December 27, 2006, to Agreement and Plan of Merger, dated as of
October 19, 2006 by and among APN Holding Company, Inc., APN Mergersub, Inc., and Applica
Incorporated (incorporated by reference to exhibit 2.1 of Applicas Current Report on
Form 8-K filed with the SEC on December 27, 2006) |
|
(e)(14) | Excerpts from the Third Supplement to Applicas Definitive Proxy Statement on Schedule
14A filed with the SEC on December 28, 2006 (incorporated by reference to exhibit (e)(14)
of Amendment No. 3 to Applicas Solicitation/Recommendation Statement on Schedule 14D-9
filed with the SEC on December 28, 2006) |
|
(e)(15) | Amendment No. 4, dated January 3, 2007, to Agreement and Plan of Merger, dated as of
October 19, 2006 by and among APN Holding Company, Inc., APN Mergersub, Inc., and Applica
Incorporated (incorporated by reference to exhibit 2.1 of Applicas Current Report on
Form 8-K filed with the SEC on January 3, 2007) |
|
(e)(16) | Excerpts from the Fourth Supplement to Applicas Definitive Proxy Statement on Schedule
14A filed with the SEC on January 5, 2007 (incorporated by reference to exhibit (e)(16)
of Amendment No. 6 to Applicas Solicitation/ Recommendation Statement on Schedule
14D-9/A filed with the SEC on January 5, 2007)
|
|
(g) | Inapplicable |
* | This press release contains a legend that makes reference to the protections afforded by the Private Securities Litigation Reform Act of 1995. Please note that the protections afforded by the Private Securities Litigation Reform Act of 1995 do not extend to forward-looking statements made in connection with the NACCO offer. | |
+ | Filed as an exhibit hereto and included in the Amendment No. 8 to Schedule 14D-9 mailed to Applicas shareholders. |
10