sec document
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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SCHEDULE 13D
(Rule 13d-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
TO RULE 13d-1(a) AND AMENDMENTS THERETO FILED PURSUANT TO
RULE 13d-2(a)
(Amendment No. 8)1
LIQUID AUDIO, INC.
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(Name of Issuer)
COMMON STOCK, $0.001 PAR VALUE
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(Title of Class of Securities)
53631T 10 2
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(CUSIP Number)
STEVEN WOLOSKY, ESQ.
OLSHAN GRUNDMAN FROME ROSENZWEIG & WOLOSKY LLP
505 Park Avenue
New York, New York 10022
(212) 753-7200
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
June 14, 2002
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(Date of Event Which Requires Filing of This Statement)
If the filing person has previously filed a statement on Schedule
13G to report the acquisition that is the subject of this Schedule 13D, and is
filing this schedule because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the
following box |_|.
Note. Schedules filed in paper format shall include a signed
original and five copies of the schedule, including all exhibits. See Rule 13d-7
for other parties to whom copies are to be sent.
(Continued on following pages)
(Page 1 of 8 Pages)
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1 The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall
not be deemed to be "filed" for the purpose of Section 18 of the Securities
Exchange Act of 1934 or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes).
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CUSIP No. 53631T 10 2 13D Page 2 of 8 Pages
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1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
STEEL PARTNERS II, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |_|
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) |_|
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 2,062,866
OWNED BY
EACH
REPORTING
PERSON WITH
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8 SHARED VOTING POWER
-0-
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9 SOLE DISPOSITIVE POWER
2,062,866
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10 SHARED DISPOSITIVE POWER
-0-
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
2,062,866
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.1%
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14 TYPE OF REPORTING PERSON*
PN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
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CUSIP No. 53631T 10 2 13D Page 3 of 8 Pages
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1 NAME OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
WARREN G. LICHTENSTEIN
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |_|
(b) |_|
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
OO
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEM 2(d) OR 2(e) |_|
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
USA
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 2,062,866
OWNED BY
EACH
REPORTING
PERSON WITH
-----------------------------------------------------------------
8 SHARED VOTING POWER
-0-
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
2,062,866
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
2,062,866
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.1%
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14 TYPE OF REPORTING PERSON*
IN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
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CUSIP No. 53631T 10 2 13D Page 4 of 8 Pages
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The following constitutes Amendment No. 8 ("Amendment No. 8") to the
Schedule 13D filed by the undersigned. This Amendment No. 8 amends the Schedule
13D as specifically set forth.
Item 3 is hereby amended and restated as follows:
Item 3. Source and Amount of Funds or Other Consideration.
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The aggregate purchase price of the 2,062,866 Shares of Common
Stock owned by Steel Partners II is $4,832,856. The Shares of Common Stock owned
by Steel Partners II were acquired with partnership funds.
Item 4 is hereby amended to add the following:
On June 14, 2002, Steel Partners II delivered a letter to the
Board of Directors of the Issuer expressing its opposition to the Issuer's
decision to enter into a definitive merger agreement with Alliance Entertainment
Corp. and offering to acquire all of the Issuer's shares of common stock for
$2.75 per share in cash. Steel Partners II believes that its proposed all-cash
offer is superior to the proposed merger and represents the best means for the
Issuer's shareholders to maximize the value of their shares in the short term. A
copy of the letter is filed as an exhibit to this Amendment No. 8 and
incorporated herein by reference.
The second paragraph of Item 5(a) is hereby amended and restated as follows:
As of the close of business on June 13, 2002, Steel Partners II
beneficially owned 2,062,866 Shares of Common Stock, constituting approximately
9.1% of the Shares outstanding. Mr. Lichtenstein beneficially owned 2,062,866
Shares, constituting approximately 9.1% of the Shares outstanding. Mr.
Lichtenstein has sole voting and dispositive power with respect to the 2,062,866
Shares owned by Steel Partners II by virtue of his authority to vote and dispose
of such Shares. All of such Shares were acquired in open-market transactions.
Item 5(c) is hereby amended to add the following:
(c) Schedule A annexed hereto lists all transactions in the
Issuer's Common Stock by the Reporting Persons since the filing of Amendment No.
7 to the Schedule 13D.
Item 7 is hereby amended to add the following exhibit:
9. Letter from Steel Partners II, L.P. to the Board of
Directors of Liquid Audio, Inc., dated June 14, 2002.
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CUSIP No. 53631T 10 2 13D Page 5 of 8 Pages
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SIGNATURES
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After reasonable inquiry and to the best of his knowledge and
belief, each of the undersigned certifies that the information set forth in this
statement is true, complete and correct.
Dated: June 14, 2002 STEEL PARTNERS II, L.P.
By: Steel Partners, L.L.C.
General Partner
By: /s/ Warren G. Lichtenstein
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Warren G. Lichtenstein
Chief Executive Officer
/s/ Warren G. Lichtenstein
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WARREN G. LICHTENSTEIN
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CUSIP No. 53631T 10 2 13D Page 6 of 8 Pages
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SCHEDULE A
Transactions in the Shares Since
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Amendment No. 7 to the Schedule 13D
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Shares of Common Stock Price Per Date of
Purchased Share($) Purchase
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STEEL PARTNERS II, L.P.
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8,100 2.5200 5/29/02
WARREN LICHTENSTEIN
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None
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CUSIP No. 53631T 10 2 13D Page 7 of 8 Pages
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EXHIBIT INDEX
Exhibit Page
------- ----
1. Joint Filing Agreement, dated July 26,
2001 (previously filed).
2. Letter from Steel Partners II, L.P. to
the Board of Directors of Liquid
Audio, Inc., dated September 10, 2001
(previously filed).
3. Letter from Steel Partners II, L.P. to
certain officers and directors of
Liquid Audio, Inc., dated October 3,
2001 (previously filed).
4. Letter from Steel Partners II, L.P. to
the Board of Directors of Liquid
Audio, Inc., dated October 22, 2001
(previously filed).
5. Letter from Steel Partners II, L.P. to
the Board of Directors of Liquid
Audio, Inc., dated October 25, 2001
(previously filed).
6. Letter from Steel Partners II, L.P. to
the Board of Directors of Liquid
Audio, Inc., dated November 26, 2001
(previously filed).
7. Letter from Steel Partners II, L.P. to
the Board of Directors of Liquid
Audio, Inc., dated April 16, 2002
(previously filed).
8. Letter from Steel Partners II, L.P. to
the Board of Directors of Liquid
Audio, Inc., dated May 29, 2002
(previously filed).
9. Letter from Steel Partners II, L.P. to
the Board of Directors of Liquid 8
Audio, Inc., dated June 14, 2002.
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CUSIP No. 53631T 10 2 13D Page 8 of 8 Pages
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STEEL PARTNERS
150 SOUTH RODEO DRIVE
SUITE 100
BEVERLY HILLS, CALIFORNIA 90212
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TEL (310) 246-3741
FAX (310) 777-3041
June 14, 2002
The Board of Directors
Liquid Audio, Inc.
800 Chesapeake Drive
Redwood City, California 94063
Ladies and Gentlemen:
Steel Partners II, L.P. ("Steel Partners"), the largest shareholder of Liquid
Audio, Inc. (the "Company"), is shocked by the Company's decision to merge with
Alliance Entertainment Corp. ("Alliance"). Clearly we are not the only group who
feels this way given the reaction by your second largest shareholder and the
substantial decrease in the Company's stock price following the announcement.
Also, from the limited public information provided, it appears this proposal may
not have been unanimously supported by the Board of Directors.
We fully intend to vote against this proposal since the value is well below the
liquidation value of the Company. Because the Board of Directors has failed to
find a buyer who will make an all-cash bid for the shares and the Company has
wasted an enormous amount of cash and time in the process of entering into a
proposed transaction which will only continue to dissipate shareholder value, we
hereby offer to acquire all of the Company's shares for $2.75 per share in cash
through a tender offer. We believe our due diligence would take no longer than
ten days. Please note our offer is not subject to any financing contingency.
We strongly believe this offer represents a "superior proposal" to the proposed
Alliance merger. Additionally, our proposal offers shareholders a risk free
alternative for realizing maximum shareholder value.
Finally, we ask that you do not further delay the annual meeting of shareholders
and hold the meeting as scheduled on July 1, 2002 so that all shareholders can
decide whether they would like you to further pursue this merger or would rather
have responsible owners control the Company.
Very truly yours,
/s/ Josh Schechter
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Josh Schechter